Norway’s central bank is having a hard time convincing traders it will cut interest rates again as Governor Oeystein Olsen grows more upbeat on the fate of the economy.

Olsen kept the benchmark rate unchanged last week but reiterated his willingness to lower rates again on the back of the most recent rate cut in December 2014. At the same time, the bank is going back on its most dire predictions made at the end of last year, when it predicted a more severe slowdown amid plunging oil prices.

Olsen is trying to battle an overheated housing market while shielding Western Europe’s biggest oil producer from lower crude prices. Norway’s recent job cuts within the oil industry pushed unemployment to the highest level since 2006. But a rebound in Brent crude in the past few months, which is up almost 50% since a January low, is now making a rate cut look less likely.

As a result, the Norwegian Krone is around 4.5% stronger versus Sterling over the past two months. However, opportunities for UK property investors are still good as the Krone is still down by 33.5% versus Sterling compared to two years ago.