In December Norges Bank forecast a rate rise to 1 percent in March 2019, followed by a gradual rise to 2 percent at the end of 2021, and last week the central bank confirmed that its outlook was largely unchanged.

"Oil investments are on the rise and together with increasing consumption growth and rising investments on the mainland, this will ensure that growth in the Norwegian economy remains strong," Nordea said.

"Weaker international growth and still low international interest rates means that Norges Bank will proceed cautiously, but the bank will not be prevented from continuing a gradual normalisation of interest rates," it added.

Nordea said the crown currency would likely strengthen moderately in line with the tightening of monetary policy.