Norway’s Central Bank Rate Raised Again
May 4, 2023
There already has been an announced 25-basis point policy rate hike at the Bank of Norway. The new rate level there of 3.25% is the highest since late 2008 and up from a pandemic low of zero percent maintained from May 2020 until a 25-bp hike in September 2021. Norwegian monetary officials had not changed the rate at this year’s first review in January but resumed tightening in March, and today’s statement opined, “based on the Committee’s current assessment of the outlook and balance of risks, the policy rate will most likely be raised further in June…. The labour market is tight, and wage growth is set to be higher in 2023 than last year… Higher wage growth and the krone depreciation will contribute to keeping inflation elevated ahead.”
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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