BofA believes that Norges Bank is inclined to stabilize interest rates based on the data.

Bank of America (BofA) analysts have noted that predicting the outcome of Norway's Norges Bank's interest rate decision for March has become increasingly challenging due to recent economic data. Ahead of the Norges Bank meeting, BofA sees slight upward risks for the Norwegian Krone (NOK). Although domestic data has a hawkish tendency, the market has already priced in a small interest rate cut for the upcoming week and approximately 1.5 cuts for the year.

BofA forecasts the EUR/NOK exchange rate at 11.00 and USD/NOK at 9.57 by year-end. Analysts believe the NOK may continue to benefit from positive developments in Europe, though potentially less compared to the Swedish Krona (SEK). They also foresee new downward potential for the NOK-SEK exchange rate in the first half of the year. Factors influencing a possible rate hold include a surprising inflation rise in February and positive results from the Regional Networks Survey (RNS).