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8 May 2015
Norges Bank to cut in June, EUR/NOK at 8.15 in 12m – Danske Bank
FXStreet (Edinburgh) - According to Jens Pedersen, Senior Analyst at Danske Bank, the Nordic central bank could lower its benchmark rate by 25 bp in June.
Key Quotes
“Norges Bank (NB) as expected left rates unchanged at 1.25% at yesterday's meeting”.
“Also as expected, Olsen stated at the press conference that a May rate cut was discussed and in comments afterwards made it clear that NB is on course to deliver a June cut”.
“Indeed, we expect a single 25bp rate cut in June but for NB to leave rates unchanged thereafter”.
“EUR/NOK went lower on the announcement, dipping below the 8.35 level, as indeed warranted by the unchanged decision”.
“However, we still target EUR/NOK at 8.55 in 1M on easing being priced in and on a more symmetric oil-price risk in the coming months. We target the cross at 8.40 in 3M, 8.25 in 6M and 8.15 in 12M”.
Key Quotes
“Norges Bank (NB) as expected left rates unchanged at 1.25% at yesterday's meeting”.
“Also as expected, Olsen stated at the press conference that a May rate cut was discussed and in comments afterwards made it clear that NB is on course to deliver a June cut”.
“Indeed, we expect a single 25bp rate cut in June but for NB to leave rates unchanged thereafter”.
“EUR/NOK went lower on the announcement, dipping below the 8.35 level, as indeed warranted by the unchanged decision”.
“However, we still target EUR/NOK at 8.55 in 1M on easing being priced in and on a more symmetric oil-price risk in the coming months. We target the cross at 8.40 in 3M, 8.25 in 6M and 8.15 in 12M”.