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NOK strengthens after Norges Bank delivers hawkish 25 bps hike

Norges Bank lifted its policy rate to 4.50%, and BBH flags a 40% implied chance of another 25 bps move to 4.75% by Q2 2027.

Reported · Written up by our desk · Major Pairs

HousingWire reports on FXStreet market coverage that Brown Brothers Harriman strategist Elias Haddad said the Norwegian krone (NOK) outperformed after Norges Bank delivered a hawkish 25 basis point rate increase to 4.50%.

FXStreet adds that BBH points to the central bank’s willingness to raise rates further if the inflation outlook warrants it, with the forecast implying a 40% probability of another 25 bps hike to a terminal rate of 4.75% by Q2 2027.

BBH also said Norway’s energy exposure remains a key tailwind for NOK, which helps limit upside pressure on USD/NOK even as odds of additional Norges Bank hikes rise.

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