Krone dips on zero interest rate

Norway’s central bank (Norges Bank) kept its key policy rate at zero on Thursday. The lack of a long-anticipated increase was expected and the Norwegian krone weakened on the news, trading at just over NOK 9 to one US dollar on Thursday afternoon. The bank’s board that decides interest rate levels and the bank’s governor, […]

Rates to rise as economy rebounds

Norwegian economists are predicting brighter days ahead and Norway’s central bank is following through with predictions of its own: Interest rates will probably rise in September and a few more times during the next year, but will continue to remain historically low. Norges Bank quickly brought rates down to zero when the Corona crisis first […]

Central bank confirms rising rates

Norway’s central bank left the country’s key policy rate unchanged on Thursday at 0.0 percent, despite higher underlying inflation than expected and much higher housing prices. Rates will “most likely” be raised, however, later this year and “somewhat faster” than earlier thought. Norges Bank‘s committee in charge of monetary policy and financial stability voted unanimously […]

Interest rate hikes expected soon

UPDATED: Soaring residential real estate prices have sparked expectations that Norway’s record-low interest rates will rise at least once if not twice later this year. The housing market is hotter than ever, and experts view interest rate hikes as the only means of cooling it down and easing an affordability crisis. “We expect ongoing growth […]

‘Uncertainty’ keeps key rate at zero

The Norwegian central bank’s key policy rate, kept at 0.0 percent this week, isn’t likely to rise any time soon. The Corona crisis continues to hold back economic growth and rates won’t rise until that changes. Economic development, or lack thereof, “is in line with projections,” said Norges Bank Governor Øystein Olsen when confirming that […]

Interest rates remain at 0%

Norway’s central bank decided on Thursday to keep its key policy rate at its record low of 0.0 percent, but noted that interest rates may rise sooner than previously predicted after vaccination programs get underway. The country’s currency, meanwhile, was ending the week much stronger than when it began. Norges Bank Governor Øystein Olsen thinks […]

Authority wants to limit borrowing

Norway’s financial authority (Finanstilsynet) wants to tighten lending requirements, part of an effort to curb the country’s ever-rising debt levels. It’s proposing a lower limit on how much private individuals can borrow, and tightening lenders’ latitude for making exceptions. With interest rates historically low, based on the central bank’s key policy rate of 0.0 percent, it’s […]

Interest rates tied to the infection rate

Norway’s central bank (Norges Bank), worried about rising Corona infection rates, opted to keep its key policy rate at zero on Thursday. That prompted the country’s currency to lose even more of its recent strength, while the bank board thinks housing prices will rise even higher than earlier expected. The decision by the central bank’s Monetary Policy […]

Key interest rate kept at zero

Norway’s central bank (Norges Bank) kept its key policy rate at 0.0 percent on Thursday amidst unusually high economic uncertainty. It all depends on what happens with the Corona pandemic and how both businesses and households deal with it. Norges Bank Governor Øystein Olsen said the bank’s own evaluation of the economic outlook and risk […]

Interest rates cut down to zero

UPDATED: Norway’s central bank did what it’s never done before on Thursday, slicing its already record-low key policy rate from just a quarter-point down to zero. The bank’s committee in charge of monetary policy and financial stability viewed it as the right thing to do, given all the economic damage caused by Corona virus control […]