Norway’s Norges Bank Keeps Rates at 4.50%, Guides ‘On Hold for Some Time’

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee kept rates at 4.50% at its January Meeting. The bank has borrowing costs that are the highest level since December 2008 as it sought to combat persistent inflation. Norges Bank guided it would stay on hold for “some time.” It dropped reference to how “the policy rate will lie around 4.5% until autumn 2024” which could be meaningful, or it could just be a reflection of the fact … Continue reading “Norway’s Norges Bank Keeps Rates at 4.50%, Guides ‘On Hold for Some Time’”

Norway’s Norges Bank Suprises by Hiking Rates Another 25bps to 4.50%

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee in a surprise decision raised rates by 25bps to 4.50% at its December Meeting. The bank has lifted to borrowing costs that are the highest level since December 2008 as it sought to combat persistent inflation. Governor Ida Wolden Bache said “The forecast indicates that the policy rate will continue to lie around 4.5% until autumn 2024 before gradually moving down”. The move is in contrast to yesterday’s … Continue reading “Norway’s Norges Bank Suprises by Hiking Rates Another 25bps to 4.50%”

Norway’s Norges Bank Holds at 4.25%, Guides Another 25bps in December with a Caveat

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously held the policy benchmark interest rate at 4.25% and guided that another hike was likely in December, repeating what it said during its September meeting, bringing borrowing costs to the highest level since December 2008. However, this time they added with the caveat that if they become “more assured that underlying inflation is on the decline, the policy rate may be kept on hold.” Market pricing continues to … Continue reading “Norway’s Norges Bank Holds at 4.25%, Guides Another 25bps in December with a Caveat”

Norway’s Norges Bank Raised Rates 25bps to 4.25% and Guided Another 25bps in December

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 25bps to 4.25% and guided that another hike was likely in December during its September meeting, bringing borrowing costs to the highest level since December 2008. Norges Bank also slightly revised its expectation for the key rate, suggesting it could hover around 4.5% through 2024. The bank stated the rise in interest rates was to manage inflation. In August, the country’s … Continue reading “Norway’s Norges Bank Raised Rates 25bps to 4.25% and Guided Another 25bps in December”

Norway’s Norges Bank Raised Rates 25bps to 4% and Guided Another Hike Likely in September

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by Norges Bank hiked 25bps to 4% and guided that another hike was likely in September during its August meeting, bringing borrowing costs to the highest level since December 2008. The result saw the Norwegian crown rise from a six-week low against the dollar up 0.2% to 10.59, having fallen as low as 10.66 earlier. Against the euro it rose 0.3% to … Continue reading “Norway’s Norges Bank Raised Rates 25bps to 4% and Guided Another Hike Likely in September”

Norway’s Norges Bank Raised Rates by 50 bps to 3.75%, Supports Krone, Fights Inflation

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 50 bps to 3.75 percent during its June meeting, bringing borrowing costs to the highest level since December 2008. Consensus was divided with 14 expecting +25bps and 11 expecting 50bps. The result surprised markets and drove the 2-year yield up 16bps and the krone up by about 1½% to the dollar. Norges bank refreshed explicit forward guidance raised the projected terminal … Continue reading “Norway’s Norges Bank Raised Rates by 50 bps to 3.75%, Supports Krone, Fights Inflation”

Norway Hikes Interest Rate to 3.25 percent, Concerns About Weak Krone

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 25 bps to 3.25 percent during its May meeting, bringing borrowing costs to the highest level since December 2008, in line with market expectations. The Committee noted that the latest inflation readings were well above the central bank’s target of 2%. said the policy rate will need to be increased somewhat further to bring inflation in line. The bank indicated that it is … Continue reading “Norway Hikes Interest Rate to 3.25 percent, Concerns About Weak Krone”

Norway Hikes Interest Rate to 3 percent, Highest Level Since February 2009 

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 25 bps to 3 percent during its March meeting, bringing borrowing costs to the highest level since February 2009, in line with market expectations. The Committee noted that the latest inflation readings were well above the central bank’s target of 2%. said the policy rate will need to be increased somewhat further to bring inflation in line. The bank had five consecutive hikes … Continue reading “Norway Hikes Interest Rate to 3 percent, Highest Level Since February 2009 “

Norway Holds Interest Rate at 2.75 percent, Signaled More Hikes Ahead

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously kept the policy benchmark interest rate at 2.75% in its January 2022 meeting, in line with market expectations, and signaled a further rate hike in the upcoming meeting.  The Committee noted that the latest inflation readings were well above the central bank’s target of 2%. said the policy rate will need to be increased somewhat further to bring inflation in line. The bank had five consecutive hikes by December, … Continue reading “Norway Holds Interest Rate at 2.75 percent, Signaled More Hikes Ahead”

Norway Raised Interest Rate by 25 bps to 2.75 percent, Highest Since 2009

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 25bps to 2.75% in its December 2022 meeting, in line with market expectations, and signaled a further rate hike in the upcoming meeting.  The bank has had five consecutive hikes since July, equaling the sharpest hike since 2002 and lifting the key rate to levels not seen since 2009, as the Committee noted that the latest inflation readings were well … Continue reading “Norway Raised Interest Rate by 25 bps to 2.75 percent, Highest Since 2009”