The Norwegian Finance Ministry has just decided to lower the central bank’s inflation aim to 2% from 2.5% causing a wild increase in the NOK as it takes the Norges Bank closer to the target.
The official statement says "The new regulation builds on the lessons learned since 2001, and lays a solid foundation for Norges Bank’s further implementation of monetary policy that enjoys the confidence of both the financial market and society as a whole".
At the time of writing the NOK is trading 0.6% higher against the greenback, off the highs but still being underpinned.
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