The GBP/NOK currency pair settled below recent high of 13.8816, its strongest level since June 26th,

after stronger-than-expected UK GDP growth and Norges Bank’s policy decision.

The British economy grew 0.4% month-over-month in June, after a 0.1% contraction in the prior two months and exceeding expectations of a 0.1% growth.

Services output contributed to the overall growth the most, rising 0.3%.

In annual terms, UK’s GDP grew 1.4% in June, the fastest rate since February.

Meanwhile, Norges Bank left its key policy rate on hold at 4.25% at its August 14th meeting, as anticipated.

This followed a 25 basis point rate cut in June.

While the economic outlook remains uncertain, the central bank noted that in case conditions evolved broadly as expected, it might deliver more rate cuts by the end of this year.

”The policy rate forecast we presented in June indicated one or two additional rate cuts in the course of the year. We have not drawn up new forecasts now, but the information we have received so far indicates that the outlook for the Norwegian economy has remained broadly in line with the outlook in June,” Governor Ida Wolden Bache said.

The exotic Forex pair lost 0.12% for the week.