Currencies
Norway’s Krone May Be Hit If Global Easing Is Delayed, DNB Says
- DNB sees krone at 12 per euro by end-2024 in new outlook
- Inflation rate could decline more slowly due to weak currency
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The Norwegian currency faces headwinds this year as global investors are likely to trim their expectations for cuts in borrowing costs, according to the country’s largest lender.
Economists at DNB Bank ASA see the krone weakening to 12 versus the euro by the end of this year, according to new economic forecasts that project soft landings for the major Western economies. This could also contribute to inflation slowing less in Norway compared with its peers, they said.