Bank of Norway

Central Bank Rate Changes in Sweden, Norway, Turkey and Brazil

September 22, 2023

  The Swedish Riksbank‘s executive board engineered a 25-basis point interest rate hike to 4.0% today, claiming that “inflationary pressures in the Swedish economy are still too high.” That compares with a zero percent rate at the start of the second quarter of 2022 and -0.50% in November 2018. Swedish inflation of 7.5% is far […] More

A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets

September 21, 2023

Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More

A Further Rise in 10-Year Sovereign Debt Yields After FOMC Minutes Got Released Yesterday

August 17, 2023

The 10-year U.S. Treasury yield climbed five basis points overnight to a 16-year high. At 4.29%, such is still almost a percentage point south of the 2007 peak of 5.26%. In Europe, 10-year sovereign debt yields rose overnight by six basis points in the U.K., four bps in Italy and Spain and three bps in […] More

Bank of Norway

June 22, 2023

In spite of the Fed’s example of pausing for awhile to assess the uncertain effects of higher interest rates on growth and inflation, several other central banks raised rates today. One of these was the Bank of Norway. Analysts were not surprised by the tightening but had been expecting an increase of 25 basis points, […] More

Mulling Service-Sector PMI Results and Waiting for the ECB Rate Hike

May 4, 2023

The dollar is modestly softer this Thursday, with drops of 0.2% against the yen and 0.1% versus the euro, Canadian dollar, and sterling. Ten-year sovereign debt yields have risen six basis points in Italy, 4 basis points in Spain, 2 basis points in Germany and the United States and a basis point in Great Britain. […] More

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