BUZZ-COMMENT-Norway's crown still too weak for the Norges Bank
Jan 23 (Reuters) - The Norges Bank holds an interim policy meeting on Thursday at 0900 GMT and the domestic and external backdrop argues for rates to be held at 4.5% but with a nod to an eventual easing in March.
Little has changed since the December meeting, but the crown remains weaker than the central bank's assumptions and interest rates abroad have edged higher. Domestic inflation for December came in marginally below the Norges Bank's call, but improving economic growth is likely to underpin prices going forward.
Being an interim meeting, the central bank will not release forecasts or rate path adjustments but will issue a verbal press statement and hold a press call.
The Norges Bank is expected to telegraph a 25-basis point March rate cut to 4.25%, which in supporting growth might trigger a NOK recovery. Overall, the impact of the meeting on the markets is likely to be limited.
EUR/NOK peaked at 11.8260 on Jan. 21 and has slipped back below the daily Ichimoku cloud top, 11.7565.
A degree of stability has returned to the crown, but EUR/NOK stands 1.8% above the Nov. 25 11.5200 low. External factors are dominating the broader market, including U.S. policy, potential trade wars and protectionism, which could limit any positive fallout from the Norges Bank meeting.
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