Norges Bank preview: Stick to NOK longs ahead of meeting - Nomura

Analysts at Nomura expect Norges Bank to maintain a positive stance at Thursday’s meeting.

Key Quotes

“While developments since the last meeting have been slightly negative, we do not view them as sufficient to alter the Bank’s view that rates will be raised ‘after summer’. Higher oil prices and looming rate hikes should provide continued support to NOK. With no forecast updates this week, FX reactions may be muted. However, we stick to our NOK/SEK longs and continue to believe that the market is underpricing Norges Bank tightening.”