October inflation data is due in Norway. Norges Bank remains credible, cautious and flexible. Therefore, economists at Commerzbank expect EURNOK to ease towards 10 again.

New information for Norges Bank

“It seems that inflation is likely to have risen again. In all probability, Norges Bank will have to adjust its inflation projections to the upside again. On the other hand, Norges Bank pointed out last week that electricity and gas prices have fallen recently, which means that the rates for November and December might already be falling, thus confirming the smaller rate step in November. If prices were not falling, Norges Bank is likely to step up the speed of its measures again in December.”

“25 bps more or less are not the decisive factor, what matters is the fact that the central bank continues to take decisive action against the price risks even though it is keeping an eye on the economy – the second part of its mandate.”

“I stick to my view that the krone is actually trading too cheaply and that EURNOK should ease towards 10 again over the coming weeks.”