The CAD/NOK currency pair hovered above a fresh 45 1/2-month low of 7.0316 on Tuesday ahead of Bank of Canada’s minutes release and after data showed Norway’s annual inflation had accelerated in January, against consensus of an easing.
The Bank of Canada kept its benchmark interest rate intact at 2.25% at its January meeting, in line with market expectations.
BoC policy makers said that the current stance remained appropriate given the central bank’s baseline economic outlook.
Governor Tiff Macklem noted that a high level of trade uncertainty made it difficult to project when and in what direction the policy rate might next move.
In its quarterly monetary policy report, the central bank maintained its forecast for modest growth this year and in 2027, while inflation is expected to hover around the 2% target.
Meanwhile, in Norway, annual CPI inflation has picked up to 3.6% in January, the latest data showed, from 3.2% in December. It has been the highest inflation rate since September 2025.
Market estimate had pointed to an easing to 3.1%.
And, Norway’s annual inflation adjusted for tax changes and excluding energy products (CPI-ATE) has accelerated to 3.4% in January from 3.1% in December.
Inflation has remained well above Norges Bank’s target, which suggests a restrictive monetary policy is still necessary.
Norges Bank left its key policy rate without change at 4% at its January meeting, in line with market consensus.
The central bank reaffirmed its December rate projection, pointing to one or two rate cuts this year, despite heightened geopolitical uncertainty.
The CAD/NOK currency pair was last down 0.34% on the day to trade at 7.0364.
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