12 Feb 2015
Norges Bank’s rate path in the limelight today – Danske Bank
FXStreet (Edinburgh) - All the attention will be today when the NB delivers its annual address, with the main focus on the future of the rate path, noted Analyst at Danske Bank K.Lomholt.
Key Quotes
“At 18.00 local time, central bank governor Øystein Olsen will deliver his annual address”.
“The market is no doubt anxious to find out whether Olsen will send out any fresh signals about the future path of monetary policy following the steep fall in the oil price and oil investments”.
“We reckon the annual address will largely be devoted to this topic but our expectations in terms of precise signals about rate-setting through to the summer are moderate”.
“On the other hand, the tone of the speech could give us an idea of how deep and persistent the downturn in the Norwegian economy is expected to be. If the mantra of ‘no need to panic’ is repeated, it will be difficult to defend current pricing in the fixed income market of two rate cuts in 2015”.
Key Quotes
“At 18.00 local time, central bank governor Øystein Olsen will deliver his annual address”.
“The market is no doubt anxious to find out whether Olsen will send out any fresh signals about the future path of monetary policy following the steep fall in the oil price and oil investments”.
“We reckon the annual address will largely be devoted to this topic but our expectations in terms of precise signals about rate-setting through to the summer are moderate”.
“On the other hand, the tone of the speech could give us an idea of how deep and persistent the downturn in the Norwegian economy is expected to be. If the mantra of ‘no need to panic’ is repeated, it will be difficult to defend current pricing in the fixed income market of two rate cuts in 2015”.