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10 Dec 2014
EUR/NOK climbs to fresh 5-year high
FXStreet (Córdoba) - EUR/NOK has pushed to fresh 5-year highs Wednesday despite in line with expectations Norwegian inflation data, as oil prices remain as the main driver for the krone.
Norges Bank decision tomorrow
Norway's CPI came exactly in line with expectations of +1.9% the headline and +2.4% the core ahead of the Norges Bank decision tomorrow (target 2.5%). The central bank is expected to leave the policy rate unchanged at 1.5% despite recent oil prices slump.
However, according to Jane Foley, analyst at Rabobank, commented that in view of the risks to growth the chances that the Norges Bank will set the scene for further rate cuts has grown. “The continuation of sluggish growth in the Eurozone combined, the increased pressure on the oil price combined with the moderation in core inflation suggests scope for a reduction in the 1.5% policy rate potentially as soon as the March Norges Bank meeting”, said the analyst.
EUR/NOK climbed to a 5-year high of 8.9354 and it is currently trading around 8.9000, recording a 0.95% gain on the day.
Norges Bank decision tomorrow
Norway's CPI came exactly in line with expectations of +1.9% the headline and +2.4% the core ahead of the Norges Bank decision tomorrow (target 2.5%). The central bank is expected to leave the policy rate unchanged at 1.5% despite recent oil prices slump.
However, according to Jane Foley, analyst at Rabobank, commented that in view of the risks to growth the chances that the Norges Bank will set the scene for further rate cuts has grown. “The continuation of sluggish growth in the Eurozone combined, the increased pressure on the oil price combined with the moderation in core inflation suggests scope for a reduction in the 1.5% policy rate potentially as soon as the March Norges Bank meeting”, said the analyst.
EUR/NOK climbed to a 5-year high of 8.9354 and it is currently trading around 8.9000, recording a 0.95% gain on the day.