Bank of Norway

Central Bank Authorities in Norway and Turkey Hold Their Fire

January 19, 2023

Norway’s policy rate was cut from 1.5% to 0% in the early months of the pandemic and not increased until September. Another hike of 25 bps to 0.5% followed in December 2021 and six more totaling 225 basis points to 2.75% followed in 2022, including a 25-bp increase last month. Officials didn’t hike further at […] More

Contrasting Concerns Among Central Bankers and Financial Market Investors

January 19, 2023

As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More

Bank of Norway and Swiss National Bank

December 15, 2022

A 25-basis point hike of the Bank of Norway‘s policy interest rate to 2.75% matches November’s incremental tightening and brings the rate level to its highest level since February 2009. Rate normalization began in September 2021 from a level of zero percent. More increases are highly probable, as inflation has been higher than imagined earlier […] More

Central Bank Interest Rate Hikes and U.S. Data Clobber Share and Bond Prices, But Dollar Soars

December 15, 2022

No fewer than eight central banks have hiked interest rates today: the European Central Bank, Bank of England, Swiss National Bank, Bangko Sentral ng Pilipinas, and Hong Kong and  Macau Monetary Authorities all by 50 basis points and matching the Fed’s action yesterday; the Bank of Norway by 25 basis points; and the Central Bank […] More

Incremental Size of Norwegian Rate Hike Reduced but Normalization Process Not Over

November 3, 2022

The Bank of Norway’s policy interest rate had been slashed early in 2020 from 1.50% to zero percent, where such remained from May of that year until a 25-basis point increase in September 2021. Two more 25-bp increases were done in September and December of last year, and with inflation intensifying, a trio of 50-basis […] More

Central Bank Rate Hike in Norway

September 22, 2022

The Bank of Norway‘s policy interest rate was lifted by 50 basis points today and becomes 2.25%. In six moves over the past year, the rate has risen from zero percent. Guidance suggests that there likely will be a further increase at the next meeting in November. Since officials see some evidence that monetary tightening […] More

Thursday Central Bank Derby Results in Japanese Forex Intervention, Many Interest Rate Hikes, and One Bizarre Cut

September 22, 2022

Net overnight movements in the dollar have ranged widely from a 1.8% plunge against the yen to a 1.1% rise versus the Swiss franc. In between, the dollar fell 0.3% versus the euro, Australian dollar, and sterling. After numerous rhetorical complaints by officials about the weakness of the yen, Japanese officials sold foreign currency directly […] More

More Tightening at the Bank of Norway

August 18, 2022

In Norway, CPI inflation has climbed from 3.0% in July 2021 to a 34-year high of 6.8% last month. Core CPI inflation of 4.5% constitutes a record high. After the pandemic hit, officials had slashed Norway’s central bank policy rate from 1.50% to 0.50% between March and May of 2020. Rate normalization at the Bank […] More

Central Banks See Little Alternative but to React to Elevated Inflation

August 18, 2022

The reinforcing cycle of high inflation and rising central bank interest rates has made a favorable environment for the dollar, which rose another 0.2% overnight against the yen, euro, yuan, peso and on a DXY weighted basis. The U.S. currency also climbed 0.4% versus the kiwi and 0.3% relative to the Swiss franc but is […] More

Bank of Norway Hikes Interest Rate

June 23, 2022

The Bank of Norway’s policy interest rate was hiked by 50 basis points to 1.25%. From a base of zero percent during the worst of the pandemic, the rate had previously undergone three 25-basis point increases last September, December, and March, and analysts were anticipating a fourth increase of that smaller size. In a released […] More