Norwegian Krone: Policy steady as Oil risks dominate – Commerzbank

FXStreet · FXStreet Insights Team · 2026-11-06 12:36 UTC

Commerzbank’s Antje Praefcke notes that Norges Bank kept its policy rate at 4.50% and maintained a ‘high for longer’ stance, leaving the door open to another hike, potentially in December.

Commerzbank’s Antje Praefcke notes that Norges Bank kept its policy rate at 4.50% and maintained a ‘high for longer’ stance, leaving the door open to another hike, potentially in December. She argues that incoming data and inflation will guide policy into 2027, but sees Oil and gas price swings, driven by Middle East risks, as the main source of volatility for the Norwegian Krone.

High for longer but data dependent

"Norges Bank left its policy rate unchanged at 4.50% yesterday, as widely expected. Also as expected, it kept the door open for further rate hikes: The Committee’s current assessment of the outlook implies that it will likely be necessary to keep the policy rate elevated for a time. The Committee is prepared to raise the policy rate if warranted by the inflation outlook."

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