Thursday, September 24, 2015

Norges Bank could cut rates today – Danske Bank

FXStreet (Edinburgh) - Senior Analyst at Danske Bank Christin Tuxen has reiterated the Nordic central bank could lower its benchmark rate at today’s meeting.

Key Quotes

“The current rate path from Norges Bank has a 68% implied probability of another 25bp rate cut and a 61% probability of a 25bp rate cut already at the 24 September meeting”.

“We expect a 25bp rate cut at the 24 September meeting based on (1) the deteriorating domestic growth outlook, (2) a higher tail risk of the Norwegian economy falling over a cliff as a result of the recollapse in the oil price and, finally, (3) lower global rates on global growth concerns”.

“In addition to the rate cut, we expect an easing bias with the revised rate path, suggesting a 25% probability of a new rate cut”.
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