Norway is the second somewhat major economy to raise rates, following Australia’s hike earlier this month. Don’t expect the neighboring ECB to even think about hiking rates anytime soon as import prices continue to tumble and bank lending slides. Norway hikes its overnight rate 0.25% to 1.50%.
EUR/USD trades at 1.4790 after stalling just above 1.4800 on a rebound. Bank jitters after GMAC went back to the government for a third bailout should keep bank stocks on the defensive today.
