Nordea Markets believe that Norges Bank at some point this year will reduce the key rate to 0 percent in order to prevent the krone from being strengthened.
This is revealed in the report, Nordea Economic Outlook, which is presented on Wednesday. Nordea does not believe the central bank will make any further cuts to negative interest rates.
Nordea believes in a continued decline in oil-related industries, but estimates that capital spending will not fall as abruptly as it did this year.
– A decent demand growth in the wider economy and a weak krone helps to cushion the fall, said the report which estimates that the economic growth will end at 1 percent this year and that inflation will be at 2 percent at the end of the year.
Source: NTB scanpix / Norway Today
