Norges Bank to maintain status quo on rates – Danske Bank

Research Team at Danske Bank, expects an unchanged key rate at the MPC meeting at Norges Bank today.

Key Quotes

“In June, Norges Bank indicated an almost 100% probability of a cut in September but the risk outlook has since changed significantly. For one thing, there are now clear signs that growth in the Norwegian economy is picking up and that the risk of a deeper and more protracted downturn has decreased greatly. Second, the housing market tightened considerably over the summer, with significant price increases, high turnover and limited supply. This means that a further rate reduction is no longer necessary when it comes to growth and is also less desirable when it comes to the housing market, given the risk to financial stability.”