Bank of Norway

Bank of Norway

January 25, 2018

The Bank of Norway kept its key policy rate steady at 0.50%, the level since a 25-basis point cut in March 2016 capped 175 basis points of easing since 2011. In a released statement, members of the executive board of the central bank asserted that “the outlook and the balance of risks for the Norwegian […] More

Dollar Extends January Losses

January 25, 2018

The dollar declined overnight by 0.5% versus the yuan, 0.4% relative to the Swiss franc and sterling, and 0.2% against the euro, yen, and peso. President Trump arrived in Europe to attend the Davos World Economic Forum. His threat of protectionism is now transitioning into actual action. The Governing Council of the European Central Bank […] More

Central Bank of Norway

December 14, 2017

The policy interest rate at Norges Bank has been 0.50% since March 2016 when a 25-basis point cut culminated 175 basis points of easing since December 2011. Norway was the first central bank in Europe to experience a central bank rate hike following the Great Recession; such was a regrettably premature attempt to return to […] More

Bank of Norway

June 22, 2017

The Executive Board at Norges Bank left the key Norwegian policy rate at 0.50% and released a statement that indicates the rate is unlikely to be raised until 2019 and then at only a gradual pace. Inflation has been lower than assumed previously despite higher-than-projected capacity usage. Inflation expectations are firmly anchored. Norway’s central bank […] More

Bank of Norway Keeps 0.5% Interest Rate and Signals No Likely Change for Quite a While

December 15, 2016

Three 25-basis point interest rate cuts were administered between June 2015 and March 2016. Policy since then has remained unchanged. Macroeconomic trends might justify further easing but housing market imbalances and external uncertainties argue otherwise. Changes in the outlook for inflation and capacity utilization imply, in isolation, a somewhat lower key policy rate in the […] More

Bank of Norway Cuts Deposit Rate to Record Low of 1.0%

June 18, 2015

Norway is an oil producer, and its economy was hard hit by the plunge in world oil prices after mid-2014 even though that dive has lately leveled off.  A statement from Norges Bank Governor Olsen says that Norwegian growth has lately been weaker than expected.  This not only justified today’s cut of 25 basis points […] More

Bank of Norway Doesn’t Cut Key Policy Rate Further, Surprising Analysts

March 19, 2015

As an energy producer and exporter, the Norwegian economy is vulnerable to the slide in oil prices since June of last year.  The Executive Board of Norges Bank, which meets quarterly, engineered a 25-basis point interest rate cut at its December 2014 meeting but did not follow up on that move now because Adverse effects […] More

Surprise Interest Rate Cut in Norway

December 11, 2014

Norway’s key central bank interest rate was cut unexpectedly today by 25 basis points to 1.25%.  The previous change was also a 25-bp cut but taken 33 months ago, and the first easing, a rate cut of 50 basis points, occurred way back in December 2011.  A statement released by Norges Bank today speaks of […] More

Norges Bank

May 8, 2014

The overnight deposit rate will continue at 1.5%, the level since cuts of 50 basis points in December 2011 and 25 bps in March 2012.  The Great Recession low was at 1.25% and followed by four 25-basis point hikes between October 2009 and May 2011. The Executive Board’s statement today notes “that it may take […] More