“NOK is the least liquid currency in G10 and was therefore very exposed to the tightening in global financial conditions, market, and lately the turmoil in the banking sector. A hawkish Norges Bank cannot counter those characteristics of the Krone, but should European sentiment continue to stabilise, it can offer a breeding ground for recovery that can ultimately help Norges Bank limit imported inflation.
“Still, we think EUR/NOK will remain highly volatile, and a sustainable return below 11.00 will require a more substantial return of market confidence in the financial system: something that we may not see in the very near term.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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