Norway’s Krone Surges as Norges Bank Damps Future Rate-Cut Bets

Norway’s krone surged to its strongest level this year against the euro after the nation’s central bank refrained from cutting interest rates and hinted at moving away from an easing bias.

The currency appreciated at least 1 percent against all of its Group-of-10 peers after the Norges Bank held its main rate at record-low 0.5 percent. The decision was forecast by 15 of 22 analyst surveyed by Bloomberg, with the rest expecting a quarter-point cut. The Oslo-based central bank raised its outlook for its rate as key economic indicators have signaled that the worst may be over for Norway’s economy, which bore the brunt of a slump in oil prices earlier this year.