According to a report by Jin Ten Data, ING analyst Pesole stated that the Norwegian central bank may hint at an upcoming interest rate cut during Thursday's meeting. Although a rate cut may have a negative impact on the Norwegian krone, this effect is expected to be temporary.
Pesole pointed out that increased risks to economic growth could pave the way for the Norwegian central bank to cut rates in June, which may hinder the recovery of the krone and result in the euro to krone exchange rate fluctuating in the 11.70-11.80 range.
He believes that considering the krone's exchange rate advantage and the euro being overbought, the euro to krone rate should continue to decline. ING's target is for the euro to fall to 11.50 against the Norwegian krone by the end of the year.