Norway’s Central Bank Seen Done Easing After Oil Crisis Escape
- Inflation is above target as indicators point to recovery
- Bank seen keeping easing bias to keep krone from strengthening
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Norway’s central bank is predicted to leave its key policy rate unchanged at a record low as the economy of western Europe’s biggest oil producer fights off the biggest slump in crude prices in a generation.
The central bank will keep its key policy rate at 0.50 percent at a meeting on Thursday, according to 15 of 22 economist surveyed by Bloomberg. Seven predict a cut to 0.25 percent. The bank will likely keep an easing bias to avoid the krone from strengthening too much, according to DNB ASA and Nordea Bank. The currency has risen 5 percent on trade-weighted basis this year.