Norges Bank surprised the market. In light of that, revisions are made to the EUR/NOK forecast slightly in the short term.
"In general EUR seems quite bearish and still downside is seen for EUR/NOK as well. Now the EUR/NOK is forecasted at 9.20 in three months time rather than 9.00", says Nordea Bank.
Norges Bank also forecast rather modest growth in private consumption the coming year, and consequently it will not change view significantly despite today's rather weak figure for consumption of goods.
"Higher unemployment is expected in Norway than Norges Bank, and lower inflation which also means that more rate cuts might come and weaker NOK (trade weighted) likely", added Nordea Bank.
