Krone to suffer significant losses if Norges Bank indicates much earlier interest rate cuts – Commerzbank

Economists at Commerzbank analyze how Norges Bank’s Interest Rate Decision could impact the Norwegian Krone (NOK).

NOK to remain unchanged if Norges Bank remains moderately restrictive

If Norges Bank remains moderately restrictive and does not surprise the market by bringing forward interest rate cuts, the effect on the Norwegian Krone should be neutral to slightly positive. 

If, on the other hand, there is any indication of much earlier interest rate cuts (à la Riksbank), I would expect significant losses in the Norwegian Krone.