VIEW: Nordea expects the "Norges Bank...>

NORGES BANK: VIEW: Nordea expects the "Norges Bank to reduce its key rate by

50bp on the 19th of March and more cuts could be on the cards ahead. The forward

guidance presented by the rate path has much less significance than usual in

these highly uncertain times. New information since December mostly argues for a

much lower rate path. Our best estimate of the new rate path signals that

another cut should be delivered further out. However, and we cannot stress this

enough, the forward guidance presented by the rate path has much less

significance than usual in these highly uncertain times. In this note we also

look at what other measures Norges Bank has at its disposal if needed and what

we think is the effective lower bound for the key rate. What Norges Bank chooses

to do in the period ahead depends on the corona outbreak, the oil price and how

the financial markets react. Uncertainty about all three is high! A lot could

change already before the meeting take place next week."