Norway: Norges Bank delivers a 50bp rate cut – Nordea

Norges Bank announced a 50bp rate cut and signals that another rate cut is on the cards, economists at Nordea apprise. EUR/NOK is trading at 11.235.

Key quotes 

“At an extraordinary meeting on 12 March, Norges Bank’s Monetary Policy and Financial Stability Committee voted unanimously to reduce the policy rate by 0.50 % point to 1 % in a response to recent weeks’ corona market turbulence.”

“The new rate path signals with 100% probability a additional 25 bp rate cut in May or June. Another 5bp for a rate cut in Sep, or 20% probability for a September cut if you like, is signaled. This means that Norges Bank will not cut rates at the ordinary monetary policy meeting next week.”

“We see risk of Norges Bank being forced to deliever more easing than the current rate path signals.”