Norges Bank remains ‘on hold’

FXStreet (Edinburgh) - The Nordic central bank has surprised market participants after it kept intact its benchmark rate at 1.25% in today’s meeting. While market expectations were pointing to a 25 bp rate cut today, the Norges Bank deferred that possibility for the next meeting in June.

In its statement, the Norges Bank sees the domestic economy performing ‘broadly in line with March projections’, adding at the same time that the rest of Norway’s trading partners are growing at a moderate pace.

It further argued that consumer prices remain close to 2.5%, unemployment is higher and wages could grow less than previously estimated.