Norges Bank led the tightening of monetary policy starting in September 2021. Economists at CIBC Capital Bank believe rates will peak at the end of the year.
One last rise from Norges Bank?
Having raised rates 13 times, Norges Bank continues to favor an additional 25 basis point hike before the end of the year. If there is no material and unexpected decline in the data, we would expect rates to reach a terminal level of 4.50% by the end of the year.
The combination of further tightening, resilient energy prices, support from an already overblown current account surplus, along with ongoing labor market tensions, point to EUR/NOK trading well below the extremes. from July/August to early 2024.
EUR/NOK – fourth quarter 2023: 11.25 | first quarter of 2024: 10.76
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
