Norges Bank

September 23, 2021

Central bank rate normalization has begun in Norway. Officials of the Bank of Norway at today’s scheduled policy review decided to increase their policy rate by 25 basis points to 0.25% from a record low of zero percent. This action reverses a 25-bp cut in May 2020 that followed two reductions in March totaling 75 basis points in March. A statement suggests that all of those cuts are likely to be reversed by the end of next year. Amid economic growth and falling unemployment and capacity slack, inflation is rising and expected to climb further towards the 2% target. Vaccinations are being counted upon to contain the negative impact of Covid.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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