French industrial bank: attractive policy rates boost Norwegian krone

Kit Juckes from Societe Generale Bank in France stated in a report that the Norwegian Krone rose to a seven-month high against the euro following the decision of the Norwegian central bank on Thursday to maintain the policy interest rate at 4.0%. He mentioned that the Norwegian Krone is likely to benefit from interest rate differentials, where investors borrow low interest rate currencies and invest in high interest rate currencies. He also mentioned that if the euro falls below 11.40 Norwegian Krone, there may be speculation about intervention by relevant parties to reverse the trend. The euro fell to a low of 11.5251 Norwegian Krone. The Norwegian central bank stated that due to still elevated inflation, they are not in a rush to cut interest rates, but they still expect to lower rates once or twice this year.