Norges Bank cut its policy rate by 25 basis points to 4.25%, marking the start of a cautious normalization process amid declining inflation and a cooling economy. The decision was unanimous, reflecting lower-than-expected inflation and a narrowing output gap, though inflation still remains above target.
The central bank projects further rate cuts through 2025, with the policy rate expected to fall below 4% by year-end and approach 3% by 2028. Despite growing economic uncertainty, Governor Ida Wolden Bache emphasized the Bank’s commitment to bringing inflation back to 2% without tightening the economy more than necessary.
Daily summary: Powell is pushing the dollar higher. Now itโs time for Big Tech earnings. ๐
EURUSD falls below 1.16 after Fed ๐ต
FED Powell Conference (LIVE)
BREAKING: Fed cuts interest rates and will end QT on December 1st ๐