The improvement in the growth outlook due to the rebound in oil prices along with the Norges Bank's focus on financial stability are likely to stay its hand at this meeting.
However, the probability of policy easing later this year remains significant, particularly if Q1 data disappoint Norges Bank projections, due to downside risks to growth.
"We narrowly expect the Norges Bank to keep its policy rate unchanged at 1.25% but to signal further cuts if the growth outlook deteriorates. We expect NOK to appreciate as a result." said Barclays in a report
