Norway: A further weakening of the NOK could make the outlook more uncertain – Nordea

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Norges Bank still warns of a hike in December but has become more uncertain. Economists at Nordea do not think a hike in December will come.

A December hike is not given

Norges Bank kept the interest rate unchanged at 4.25%, as widely expected. The central bank reiterates that the interest rate will probably be raised in December.

We think inflation will surprise on the downside in the coming couple of months so that Norges Bank will not raise the interest rate in December, but the margins are slim. A further weakening of the NOK could make the outlook more uncertain.