Norges Conundrum
As our economists put it, the RBA’s decision this week was ‘boring’, and they may not be the only central bank in this category this week. Then again, Norges Bank could offer something different and out of all the central banks deciding this week, it is the only one where consensus surveys lack unanimity and there is a very small chance of a cut. We stand by our view that Nordic markets remain somewhat ‘broken’ at this point and fundamentals may still have to take a back seat. Nonetheless, if a central bank does materially surprise, strong levels of short positioning will not be able to stand in the way of a correction into new ranges.
Read the full report: UBS