The Norwegian krone declined today as slowing growth of consumer prices fueled speculations that the central bank will perform an interest rate cut to boost inflation.
The year-over-year growth of the Consumer Price Index adjusted for tax changes and excluding energy products fell 0.2 percentage point to 0.9 percent in March from February. Analysts have hoped the gauge to stay unchanged. The unexpected slowdown of inflation led to speculations that the Norges Bank will slash borrowing costs in May or June. The next policy meeting will occur on May 8.
USD/NOK went up from 5.7090 to 5.7400 as of 15:03 GMT today and its daily high was at 5.7540.
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