EUR/NOK: Inflation surprise challenges rate-cut hopes – Societe Generale

FXStreet Insights Team FXStreet

Societe Generale analysts note that stronger‑than‑expected Norwegian inflation is supporting the Norwegian Krone and questioning expectations for further Norges Bank easing. EUR/NOK is trading near key supports at 11.3610 and 11.2614, while front‑end yields have jumped sharply as CPI and core inflation both overshoot forecasts, reinforcing the central bank’s view that inflation remains too high.

Norwegian data bolster Krone and yields

"The NOK also marches on after the upside surprise for inflation raises new questions over the likelihood of another rate cut."

"For EUR/NOK, last week's low rests at 11.3610, the pre-Liberation day low is 11.2614."

"CPI accelerated to 3.6% yoy in January from 3.2% in December, the consensus was 3.0%."

"Core climbed to 3.4% from 3.1%."

"Inflation was judged too high in the January statement of the central bank."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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