Markets expect Norges Bank (NB) to keep rates unchanged. Thus, the Krone is unlikely to weaken as a result of the meeting, Antje Praefcke, FX Analyst at Commerzbank, reports.

Norges Bank likely to leave everything on hold

“Norges Bank was one of the first central banks that had started the rate hike cycle to fight inflation risk. That is why it could wait until March to hike its key rate again if necessary, based on more information on inflation rates and growth as well as its most recent projections. I, therefore, consider it to be quite likely that it will keep everything on hold today and will only issue a short statement, which will contain a reference to a further step.”

“The market too expects rates to remain unchanged today and has already significantly adjusted its rate cut expectations for the longer-term. I, therefore, don't see a lot of downside potential for NOK as a result of the meeting.”

See – Norges Bank Preview: Forecasts from three major banks, will this hike be the last?