Neither rate nor FX markets should be surprised as Norges Bank is set to stick to the plan this Thursday, economists at Nordea report.

Norges Bank to raise the key rate by 25 bps

We expect Norges Bank to increase the key rate by 25 bps to 4.0% this week and signal another hike in September.

Rate markets have a view close to Norges Bank’s rate path, thus rates are unlikely to move much after the rate announcement. 

For the NOK, an outcome as we expect will likely not lead to material changes to the currency’s value.