As expected, Norges Bank left the policy rate at 4.50% yesterday. Anyway, the question was more whether it might give first indications of earlier interest rate cuts. According to the September rate path, it does not expect the first interest rate cut until March 2025. However, the disinflation process has made good progress since the summer, so it is quite possible that it will bring forward the timing of the interest rate turnaround, Commerzbank’s FX analyst Antje Praefcke notes.
NOK gains ground in the wake of the interest rate decision
“However, nothing of the sort was apparent in the rather brief statement. “The policy rate will most likely be kept at 4.5 percent to the end of 2024,” said Governor Ida Wolden Bache. As we expected, Norges Bank is postponing the decision on when the first interest rate move will come until December, when the new forecasts will be presented in the new monetary policy report, stating: ‘The Committee will have received more information about developments ahead of its next monetary policy meeting in December, when new forecasts will be presented’.”
“In this respect, it can be assumed that if the data and developments warrant it, Norges Bank will announce an interest rate cut in December for January. Inflation has fallen somewhat faster than expected in September, but the krone is somewhat weaker and international policy rate expectations have risen according to Norges Bank. Norges Bank will therefore keep a close eye on these aspects – in addition to the fundamentals – between now and December.”
“The NOK was able to gain ground in the wake of the interest rate decision. While it is still not certain whether an interest rate cut will come sooner than in March, the next move will be down. The prospect of a rising real interest rate, along with the waning uncertainty surrounding the US election, should have helped the NOK.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Extra gains need to clear 0.6400
AUD/USD rose for the third day in a row, approaching the key 0.6400 resistance on the back of the acute pullback in the US Dollar amid mounting recession concerns and global trade war fear.
EUR/USD: Powell and the NFP will put the rally to the test
EUR/USD gathered extra steam and advanced to multi-month peaks near 1.1150, although the move fizzled out somewhat as the NA session drew to a close on Thursday.
Gold looks offered near $3,100
Prices of Gold remain on the defensive on Thursday, hovering around the $3,100 region per troy ounce and retreating from earlier all-time peaks near the $3,170 level, all against the backdrop of investors' assessment of "Liberation Day".
Interoperability protocol hyperlane reveals airdrop details
The team behind interoperability protocol Hyperlane shared their upcoming token airdrop plans happening at the end of the month. The airdrop will occur on April 22, and users can check their eligibility to receive $HYPER tokens via a portal provided by the Hyperlane Foundation by April 13, the team shared in a press release with CoinDesk.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.