The upcoming figures on economic activity and inflation will be crucial. As long as the economy is robust and inflation remains high, Norges Bank is unlikely to consider cutting rates.

The big question for the market will be which central bank – the ECB or Norges Bank – might cut rates first and to what extent. Overall, however, Norges Bank has shown, most recently in December in impressive fashion, that it is taking decisive action against the threat of inflation, which has catapulted the krone upwards accordingly. I am therefore comfortable with my forecast of further moderate Krone appreciation in 2024 and 2025.