Norges Bank: a rate cut remains on the cards – TDS

In the opinion of strategists at TD Securities, the Nordic central bank could cut its key benchmark rate by 25 bp at its June meeting.

Key Quotes

“While we expect a rate cut in 16Q2 to bring the key policy rate to 0.25%, odds are skewed towards this happening at the June meeting instead of May”.

“The Norges Bank last met in March, and while the move up in oil prices since then might give them reason to pause this week, we think they’ll ultimately need to ease again in June (and again in 16H2) when their next MPR is released. But risks are skewed to the downside for a cut”.