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
