GBP/NOK: Sterling Loses Ground After Bank of England’s Dovish Hold and Lower Growth Forecasts

The British pound extended its losses against the Norwegian krone for the fourth consecutive day after both the BoE and Norges Bank held their monetary policy meetings yesterday.

As widely expected, both central banks held interest rates unchanged, but the Bank of England’s dovish tone pushed the pound significantly lower against other major currencies.

The Bank of England kept rates unchanged at 0.75% with a 7-2 split vote in favour of holding rates steady. However, the GDP growth forecast in the fourth quarter was lowered to just 0.1% from the previous 0.2%, reflecting a series of weak economic data coming from the UK in the recent period.

In addition, the bank commented that a rate cut may be on the table if global growth fails to stabilize or uncertainties around Brexit remain elevated. On the positive side, a Phase One trade deal between the US and China could provide some support for the UK economy, although the labour market has started to show signs of loosening.

In Norway, the country’s central kept rates steady at 1.5% after raising rates to a total of 75 basis points in 2019. The bank said inflation is close to the target and that a continued krone depreciation would provide further inflationary pressures. Governor Olsen also added that “the policy rate will most likely remain at the current level in the coming period.”

Following the BoE meeting, the pound initially pushed higher against the krone but gave back gains during the New York session to reach an intraday low of 11.6554. As of 7:00 a.m. London time, one pound bought 11.6940 Norwegian krones.

The pair reached an important support level on the daily chart that aligns with the November 8 low. A decisive break below yesterday’s low could lead to further losses in sterling. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.