SEK/NOK extends gains, focus on Norges Bank

The SEK/NOK currency pair extended gains on Thursday ahead of the outcome of Norges Bank’s policy meeting.

Norges Bank is expected to leave its key policy rate without change at 4% at its November 6th meeting.

In September, the central bank lowered its policy rate by 25 basis points to 4%, which marked the second rate cut in five years.

Norges Bank had said that the policy rate would likely be gradually reduced to 3% in upcoming years, while inflation is forecast to steady near 2% by 2028.

Meanwhile, Sweden’s central bank left its key policy rate intact at 1.75% at its November 5th meeting, in line with market consensus.

Policy makers signaled that borrowing costs would likely remain at this level for some time.

Inflation continues to be above the central bank’s 2% medium-term target. Yet, it has eased broadly in line with the September projection, solidifying the view that the current price pressures are temporary.

GDP growth was slightly stronger than expected in the third quarter, but the labor market still showed signs of weakness, the central bank said.

The SEK/NOK currency pair was last up 0.07% on the day to trade at 1.0689.