Norges Bank is likely to cut interest rates by 25bp in May

Norges Bank will publish its interest rate decision May 7th at 10:00. The press conference starts 10:30. 

In March Norges Bank published a rate path that indicated that rates would be cut either in May or June with a 50% probability for each meeting. Since then the developments have been mainly on the weak side compared to Norges Bank's forecast and hence Norges Bank is likely to cut interest rates by 25bp in May. 

However, the outcome of the May Monetary Policy Meeting is far from obvious, and analysts seems to be split on the middle, with 7 out of 13 analysts expecting a  rate cut in a Reuters poll. 

"We think the developments since then have been mainly to the downside and expect Norges Bank to cut key rates at the May 7th Monetary Policy Meeting." said Nordea Research