Norges Bank is set to raise its policy rate by 50 bps. Economists at Commerzbank expect the krone to benefit from the decision as further rate hikes are expected to combat inflation.

Wealth of energy sources and Norges Bank support NOK

“It is expected that Norges Bank will hike its interest rate by 50 bps to 2.25% today.”

“Norges Bank is not going to leave any doubt about its determination in fighting inflation today and will signal further rate hikes. That is likely to provide sufficient support to NOK, in particular as Norway’s gas and oil supplies ensure that NOK will principally benefit from the energy crisis in Europe.”

“We assume that EUR/NOK will ease below 10 again over the coming months.”

See – Norges Bank Preview: Forecasts from five major banks, set for another 50 bps