Norges Bank likely to deliver a 25bp rate cut

The wage growth in Norway ended up weaker than expected in 2014 and signalsfrom the labour market organisations point to a moderate wage settlement this year.

Global rates have dropped since the December report, adding downward pressure to the interest rate path.

Danske Bank notes...

Norges Bank is set to keep the easing bias by presenting a new rate path with a 50% implied probability of another rate cut before June. However, we do not expect Norges Bank to cut rates further post March.