The EUR/NOK currency pair hovered above a 3-year low of 10.9333 on Thursday ahead of the outcome of the European Central Bank’s policy meeting.
The European Central Bank is largely expected to keep its main refinancing operations rate intact at 2.15% at its March 19th meeting.
And, the ECB deposit facility rate is expected to be kept at 2.00%.
ECB President Christine Lagarde had said that monetary policy was in a “good place” and played down concerns that a stronger Euro could pose a risk to the inflation outlook.
Lagarde’s remarks suggested that interest rates were likely to remain steady for the foreseeable future.
The ECB President also warned that inflation figures could move unevenly in the coming months, but emphasized that policy decisions should not be driven by any single release of data.
Traders will scrutinize forward guidance for clues on the future rate trajectory. A recent surge in oil prices, linked to disruptions in the Strait of Hormuz, has intensified inflation concerns and led to a hawkish repricing of interest rate expectations.
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