Barclays see considerable uncertainty in Norwegian recovery

They write that while inflation overshoots continue to point to rate normalization, weaker-than-expected growth and sentiment data still post considerable uncertainty to the recovery ahead.

• Overall, they expect a constructive but still cautious view on the Norwegian economy. They add that dovish or hawkish biases from the bank, in the near term, either expressed verbally or through projected rate profiles, are likely to act as less of an impetus for the general direction of the NOK, as global central banks remain in wait-and-see mode.
• While a potential pullback in risk sentiment, equities or oil prices remain near-term risks, Barclays are still constructive on NOK's medium-term prospects against the EUR and SEK.