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 normalcy, which with a 0.50% rate level now is still out of reach. The statement released after the Executive Board’s final policy review of 2017 declares that while improved growth and prospects for inflation suggest that the first interest rate hike may occur sooner than had been believed previously, a variety of lurking risks make it imperative to proceed with caution both in deciding when it’s okay to lift rates and after that bridge has been crossed.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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