Norges Bank likely to keep rates on hold in January – Nordea Bank

Norges Bank is set to meet for its interest rate decision next week. According to a Nordea Bank research report, the central bank is expected to stay on hold. There will be no new rate path, but the main message would be that news has been widely consistent with the December report.

With no rate path, the focus would be on whether the board’s assessment indicates any change in view. The fall in unemployment decelerated in December as Norges Bank had expected, while inflation rose as anticipated. The NOK is at present at its forecast and money market spreads close to forecast.

Two things on the upside would be mentioned, however. Expected rates outside of Norway have risen since the December meeting and oil prices have increased. Spot prices have seen the sharpest rise, up USD 6 per barrel.

“Even if news in sum might have been on the upside to Norges Bank it does not warrant any significant change to their view”, noted Nordea Bank.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest