At its last meeting in early November, Norges Bank surprised with a smaller rate step of only 25 bps. Chances of a 50 bps hike next month has increased, but the Norwegian Krone needs hawkish comments from the central bank to be able to strengthen, economists at Commerzbank report.

Increasing speculation that Norges Bank might implement a bigger rate hike step in December

“There seems to be increasing speculation that Norges Bank might implement a bigger rate hike step in December. However, so far, the NOK was unable to benefit from this speculation.” 

“Perhaps what is required is some support from Norges Bank in the shape of hawkish comments. Until we get these, Krone is likely to struggle for now.”