Back
10 Feb 2014
Flash: EUR/NOK seen at 8.50 in 3 months - UBS
FXStreet (Córdoba) - The UBS analyst team commented that higher inflation in Norway likely to be temporary.
Key quotes
"The surprising rise of core inflation in Norway from 2.0% to 2.4% in January has been mainly driven by winter sales of clothing and shoes, which have seen much lower price cuts than usual".
"Furthermore, January producer prices are also still in line with moderate price pressures. Given the weakening trend in the economy, we expect the higher inflation to be temporary and still expect a considerable risk of a rate cut by the Norges Bank in March. We forecast EUR/NOK at 8.50 in three months".
Key quotes
"The surprising rise of core inflation in Norway from 2.0% to 2.4% in January has been mainly driven by winter sales of clothing and shoes, which have seen much lower price cuts than usual".
"Furthermore, January producer prices are also still in line with moderate price pressures. Given the weakening trend in the economy, we expect the higher inflation to be temporary and still expect a considerable risk of a rate cut by the Norges Bank in March. We forecast EUR/NOK at 8.50 in three months".