Nordea's view ahead of Wednesday's......>

NORGES BANK: Nordea's view ahead of Wednesday's Norges Bank announcement:

- Repo rate forecast at zero "possibly with a cosmetic increase at the end of

the path three years from now."

- Norges Bank likely to present with economic forecasts, not just scenarios.

- Likely to "leave door ajar for a cut" but in "verbal form rather than

reflected in the rate path".

- Nordea note that Riksbank haven't ruled out a cut "once the situation has

normalised" but think more QE is more likely. No new QE likely until September

or November, however.

- The Norges Bank "may change the system of policy rates longer out. This way

the policy rate can be kept at zero while the corridor around the repo rate is

widened so that some of the bank's excess liquidity will be invested at

considerably lower levels." Nordea note that this would be a similar policy to

the ECB.