CHF/NOK settles below 1-month high, posts weekly gain

The CHF/NOK currency pair settled below recent high of 12.4833, its strongest level since May 16th, in the wake of Norges Bank’s and the Swiss National Bank’s policy decisions.

Norges Bank lowered its key policy rate by 25 basis points to 4.25% at its June meeting, confounding market consensus of a hold.

The central bank has kept borrowing costs at a 15-year high of 4.50% since December 2023.

Norges Bank said it might deliver more rate cuts by the end of this year, in case the economy developed as expected.

Yet, it cautioned that heightened uncertainty prevented it from committing to a particular rate path.

In the meantime, the Swiss National Bank lowered its policy rate by 25 basis points to 0% at its June meeting, in line with market consensus.

The decision, which came amid easing inflationary pressures and a weakening global economic outlook, brought borrowing costs to their lowest level since August 2022.

Swiss consumer prices dropped 0.1% in May – the first decline in four years, mostly contributed to by lower prices in tourism and oil products.

The central bank now forecasts average inflation at 0.2% for 2025, at 0.5% for 2026 and at 0.7% for 2027.

The CHF/NOK currency pair settled 0.49% higher at 12.3585 on Friday.

The exotic Forex pair gained 1.28% for the week.