Norway’s consumer price index cooled to 0.1% m/m in October from 0.5% in the previous month. However, on a year-on-year basis, CPI rose 2.5% in October, higher than 2.4% in the previous month. Some market participants had thought that slowing oil investment should cause the central bank to consider a rate cut. But with inflation hitting its target, the Norges bank will probably continue to keep its key rate on hold. The NOK saw a strong rally both against the euro and dollar after the data. EUR/NOK came off today’s high of 8.6832 while USD/NOK is trading at 6.7464 (around 10:45 GMT).
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