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 […]

Markets flew after interest rate cut

Oil prices rose, the Oslo Stock Exchange (OSE) rebounded and all of its most-active shares were showing strong gains after Norway’s central bank slashed interest rates Friday morning. There was no lack of drama, though, after an unusual halt in trading and a delayed open for hard-hit Norwegian Air. It was another breathless day for […]

Interest rates cut, shares rebounded

After another terrible day for the Oslo Stock Exchange on Thursday, its main index bounced back Friday morning, up more than 2 percent as trading opened. Investors clearly responded to a Norwegian central bank board decision to cut interest rates by a half-point. The decision was made at an extraordinary meeting of the Monetary Policy […]

No new rise in interest rates

Norway’s central bank handed out an early holiday gift to borrowers on Thursday, when it confirmed that its executive board had opted against another interest rate hike. The krone strengthened anyway, but that’s probably tied to higher oil prices. Norges Bank’s board announced that its policy rate would remain at 1.5 percent. The policy rate […]

No increase in the key interest rate

The executive board of Norway’s central bank (Norges Bank) has acted in line with economists’ recommendations this time, announcing Thursday that there would be no increase in its policy rate. It remains unchanged at 1.5 percent. Norwegian economists making up an interest rate panel for the country’s major business newspaper, Dagens Næringsliv (DN), were surprised […]

Interest rate hike aimed at stability

The executive board of Norway’s central bank defied many local economists and other central bankers around the world on Thursday by going ahead with its plan to boost interest rates. The board wants to maintain economic and financial stability amidst “solid” economic growth, while also trying to rein in debt and housing prices. The modest […]

Historically weak krone recovers a bit

It’s been 17 years since it cost more than NOK 9 to buy one US dollar, but that’s how weak the krone was through the weekend. It regained some strength on Monday, but not much, and now interest rates may not be raised after all. As the krone traded at around NOK 8.97 late Monday […]