Taper talk: Norwegian krone could strengthen after FOMC

A day after the Federal Reserve meets in the US, we’ll hear from its Norwegian equivalent, Norges Bank. It will discuss whether to keep interest rates on hold, The central bank kept its benchmark interest rate at 1.5 percent in June.But the latest data showed that Norway’s Core inflation jumped 2.5% on-the year, so analysts think this could well mean the end of any monetary dovishness on the part of the central bank, which, at its last policy meet on June 20 had suggested lower rates might be ahead. The Norwegian krone has gained well over 1.5% against the euro since the release of the inflation numbers.Data this week also showed the economy grew 0.2 percent in the second quarter, less than a third the estimated pace.