NOK: Stable with slight upward trend – Commerzbank
|Commerzbank's report by Antje Praefcke indicates that the Norwegian Krone (NOK) is expected to remain stable with a slight upward trend. Norges Bank is signaling only one interest rate cut per year as inflation remains high, while the economic outlook for Norway is positive. The report highlights that the NOK's stability is supported by solid public finances despite uncertainties in the geopolitical landscape.
NOK outlook remains positive
"If the economy evolves broadly as currently envisaged, the policy rate will be reduced further in the course of the year."
"We are not in a hurry to reduce the policy rate further. Inflation is still too high."
"Our base scenario remains, as does that of Norges Bank, that the policy rate will continue to fall very slowly, and accordingly that the NOK will remain stable with a slow upward trend."
"I expect the Norwegian krone to rise slightly against the euro in the coming quarters due to its positive fundamentals, but I expect only a slow, very moderate appreciation."
"This means that if economic turmoil or inflationary consequences arise as a result of uncertainty, Norges Bank reserves the option to lower the policy rate faster or more slowly, or even to raise it again if necessary."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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