Norges Bank confirmed today that the key rate will be hiked in March. Four rate hikes are expected this year – this is a medium-term positive for the krone, in the opinion of economists at ING.
Expect four rate hikes this year
“We expect Norges Bank to signal a total of four 2022 rate hikes at its meeting in March, and there’s little reason to doubt that will happen.”
“Monetary policy remains a bullish factor for Norway’s krone in an environment where we expect markets to reward those currencies that can count on hawkish central banks.”
“As soon as market sentiment stabilises, NOK’s attractive yield and benign external drivers point towards further appreciation.”
“We expect EUR/NOK to slip below 9.90 in 1Q, and to reach 9.50 by year-end.”