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Norges Bank left policy unchanged; decent rebound of NOK expected - UBS

FXStreet (Córdoba) - The Norges Bank held its policy decision on Thursday and left its stance broadly unchanged, leading to a 1% recovery in the krone against the euro and the US dollar. The UBS analyst team believe there is still a slight chance of another preemptive rate hike being delivered at the December meeting.

Key quotes

"The Norges Bank meeting was rather uneventful. The bank highlighted that the Norwegian economy had performed slightly weaker than projected in its September Monetary Policy Report, and that household consumption had weakened a bit."

"On the other hand, the NOK had been weaker than anticipated and inflation and the price of oil had performed in line with previous expectations. As a result, the bank left the key policy rate unchanged at 0.75%."

"In our view, there is still a slight chance of another preemptive rate hike being delivered at the December meeting, although we believe the Norwegian economy has coped with the worst of the oil price downturn already and should recover going into 2016. We continue to expect a decent rebound in the NOK in the coming months."

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