NOK Rates on Hold

On Wednesday 5/8/13 the central bank of Norway, the Norges Bank http://www.norges-bank.no/en/ , decided to keep the base interest rate of Norway on hold. The current and standing rate for the NOK is 1.5%. Currency traders and the Market had priced in a 20% chance that the Norges Bank would decide to cut rates.
After the announcement of the NOK rate on hold, the NOK gained. The next Norges Bank meeting is in six weeks. The consensus is that the NOK will most likely gain slightly as that time approaches. The NOK interest rate should remain either on hold or be reduced going into the summer.

USD/NOK Short Term Forecast

o 3m 5.79
o 6m 5.54

Source UBS, Norges Bank

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