Capital Macro: Norwegian central bank in no rush to cut key interest rate

Capital Economics said that the Norwegian central bank is clearly not in a hurry to cut interest rates again, and it is expected that the next rate cut will be in March. The central bank has not released new forecasts, but the September forecast showed that the next rate cut would be in the second half of next year. "If inflation data continues to be below their expectations, the bank may act sooner," said Jack Allen-Reynolds, deputy chief economist for the eurozone. However, any action will be gradual, Capital Economics believes that policymakers do not have much reason to further cut interest rates significantly, so the next rate cut is likely to be the last of this cycle.