Norges Bank is no longer falling behind the ECB in its determination. That is why economists at Commerzbank are comfortable with the forecast of a moderate appreciation of the Krone later this year and next year.

Hawkish Norges Bank

Norges Bank showed courage in June. It raised the key interest rate by 50 basis points and signaled two more rate hikes this year. Compared to the ECB, it thus no longer appears less determined to tackle inflation risks. 

The NOK has seen its lows, and it should be able to appreciate moderately against the Euro during the course of the year.