AUD/NOK holds near 5-week high, eyes on central banks

The AUD/NOK currency pair held close to a 5-week high of 6.7409 on Monday ahead of the outcome of the Reserve Bank of Australia’s and Norges Bank’s policy meetings.

The Reserve Bank of Australia is expected to keep its cash rate intact at 4.35% at its June 16th meeting.

In May, the RBA raised borrowing costs by 25 basis points to 4.35%, as eight members backed the hike, while one policy maker preferred to hold rates at 4.10%.

In its Monetary Policy Statement, the RBA said inflation had surged sharply in H2 2025. It pointed to several drivers, including capacity constraints, higher fuel and commodity prices, and the Middle East conflict.

The Australian central bank has also indicated that further rate hikes are anticipated. Its projections point to a policy rate of 4.70% by the end of 2026, with no reductions expected until 2028.

Meanwhile, Norges Bank is expected to leave its key policy rate without change at 4.25% at its June 18th meeting.

In May, the central bank unexpectedly raised its policy rate by 25 basis points to 4.25%, as it emphasized inflation remained too high and was likely to stay elevated because of the ongoing Middle East war.

Policy makers noted that a higher policy rate was necessary to drive inflation back to target within a reasonable timeframe.

Norges Bank said it still projected a policy rate between 4.25% and 4.50% by year-end.