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Norwegian Krone Rises After Central Bank’s Meeting, Crude Oil Rally

June 22, 2017 at 19:10 by Vladimir Vyun

A mix of Norwegian krone billsThe Norwegian krone rose against the US dollar today after the nation’s central bank basically ruled out the possibility of an interest rate cut. The gains of crude oil also helped the currency.

The Norges Bank kept its benchmark interest rate unchanged at 0.5% at today’s policy meeting. The central bank said that inflation was lower than expected but should rebound later. As for interest rates, bank’s Governor Øystein Olsen said:

The Executive Board’s current assessment of the outlook and the balance of risks suggests that the key policy rate will remain at today’s level in the period ahead.

The central bank predicted that key policy rate will remain the same through 2017 and 2018 and will start rising in 2019.

The rising prices for crude oil also contributed to the krone’s good performance. Crude accounts for about a quarter of Norway’s export revenue.

USD/NOK dropped 0.39% to 8.4963 as of 20:09 GMT today.

If you have any questions, comments or opinions regarding the Norwegian Krone, feel free to post them using the commentary form below.

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