Norges Bank will have to raise its rate path quite considerably to support NOK – Commerzbank


Norges Bank (NB) hiked its key rate by another 50 bps to 1.75% in August. At Thursday's meeting, the central bank will have to raise its rate path significantly to propel the krone, economists at Commerzbank report.

NB to refer to the downside risks for the economy

“The market is pricing in 50 bps. That means Norges Bank would have to raise its rate path quite considerably and deliver a hawkish statement to support NOK additionally.” 

“The recent regional business survey illustrated that the risks for growth have risen. Moreover, inflation might begin to peak soon. So it is not certain that NB will be much more restrictive than it was before. I fear it is more likely to refer to the downside risks for the economy, and I, therefore, see little upside potential for NOK.”

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays strongly bid near 1.0500 on German Conservatives election win

EUR/USD stays strongly bid near 1.0500 on German Conservatives election win

EUR/USD stays strongly bid near 1.0500 in the European session on Monday. The pair cheers the German Conservatives Party win in the federal election, which revives hopes for better economic outlook. The further upside could remain elusive due to a cautious market mood. Germany's IFO data eyed. 

EUR/USD News
GBP/USD: Gains remain capped below 1.2700 ahead of BoE-speak

GBP/USD: Gains remain capped below 1.2700 ahead of BoE-speak

GBP/USD kicks off the new week on a positive note but remains below 1.2700 in the early European trading on Monday. Broad US Dollar weakness helps the pair regain ground but the upside appears capped as traders turn cautious ahead of speeches from several BoE policymakers. 

GBP/USD News
Gold price remains confined in a multi-day-old trading range; sits near all-time peak

Gold price remains confined in a multi-day-old trading range; sits near all-time peak

Gold price continues to draw support from persistent worries about Trump’s tariff plans. The emergence of fresh USD selling and inflation concerns also underpin the XAU/USD. Hawkish Fed expectations keep a lid on further gains for the non-yielding yellow metal.

Gold News
Dogecoin bears remain strong despite Elon Musk’s endorsement

Dogecoin bears remain strong despite Elon Musk’s endorsement

Dogecoin extends its decline, trading around $0.23 on Monday after falling 8.55% last week. Coinglass’ long-to-short ratio for DOGE reads below one, indicating more traders are betting for a correction while the technical outlook projects a pullback toward the $0.20 level.

Read more
Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK

Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK

We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025