High inflation standing in Norges Bank's way

The underlying inflation rate in Norway currently stands at 3.1%. The Norges Bank believes the krone that is weaker than it had expected is mainly responsible for the development.

The currency is highly volatile particularly over the past few months. The inflation is expected to remain at elevated levels for now, states Commerzbank. 

The October data is scheduled to release today is likely to underline that. Norges Bank does not like that at all though. What it currently really wants is to stimulate the economy that is suffering due to the weak oil price. A further rise in inflation would prevent it from cutting rates any further, added Commerzbank.