Economics
Norges Bank Won’t Hike Interest Rates for Years, Krone Flat
Norway’s central bank signaled today that it is planning to keep interest rates at the current record low levels for at least a couple more years. The Norwegian krone weakened as a result of the announcement but has rebounded afterward and is now heading to end the session about flat. As was widely expected, the Norges Bank kept the policy rate (its key interest rate) at zero, saying that “he policy rate will […]

Norway’s central bank signaled today that it is planning to keep interest rates at the current record low levels for at least a couple more years. The Norwegian krone weakened as a result of the announcement but has rebounded afterward and is now heading to end the session about flat.
As was widely expected, the Norges Bank kept the policy rate (its key interest rate) at zero, saying that “he policy rate will most likely remain at today’s level for some time ahead”. The overnight lending rate remained at 1%, while the reserve rate at -1%. The central bank explained how the nation’s economy fared after the COVID-19 pandemic:
The Covid-19 pandemic has led to a sharp downturn in the Norwegian economy. Activity has picked up through summer, and unemployment has moved lower. The increase in infection rates may put a brake on the upswing in the coming period. It will take time for output and employment to return to pre-pandemic levels.
The Norges Bank mentioned that underlying inflation was above target but the appreciating krone and low wage growth should moderate it. The statement also explained that low interest rates were helping the economy but a long period of low rates can create financial imbalances. Nevertheless, the bank signaled that it is planning to keep rates at the current level for a long time:
The policy rate forecast is little changed since June 2020 Monetary Policy Report and implies a rate at the current level over the next couple of years, followed by a gradual rise as activity approaches a more normal level.
USD/NOK was about flat at 9.4950 as of 19:52 GMT today after rising to the daily high of 9.5942 earlier. EUR/NOK was at 11.0802 after opening at 11.0624 and rising to the session high of 11.1747. GBP/NOK opened at 11.7827, rallied to the session maximum of 11.8625 but pulled back to 11.7922 later.
© NewsInspector for Forex News, 2020. |
Permalink |
No comment |
Add to
del.icio.us
Post tags: EUR/NOK, Interest Rates, Krone, Norges Bank, Norway, USD/NOK
Feed enhanced by Better Feed from Ozh

Here’s What Retail Investors Are Most Interested In Buying
Here’s What Retail Investors Are Most Interested In Buying
U.S. retail investors, enticed by a brief pause in the interest rate cycle, came…
Ticking Time Bombs: 3 Homebuilder Stocks to Dump Before the Damage Is Done
The housing market is in a tricky spot right now. Higher interest rates are causing problems and distortions in the market. With the average interest rate…
Don’t Miss the Boom: 3 Fintech Stocks Set to Explode Higher
The fintech sector has significantly benefited from the advances in technology and the past few years have seen a solid growth of this sector. The pandemic…
-
Uncategorized9 hours ago
Closing Bell: Nothing inflated about ASX as steady August CPI baked into latest loss, benchmark now short -2.4pc this week
-
Energy & Critical Metals20 hours ago
Germany Edges Closer to 50% Renewable Energy Milestone Amid Solar Slowdown
-
Uncategorized13 hours ago
High Voltage: PMT’s Corvette lithium resource could be a 300Mt titan… if an ENTIRE LAKE can be drained first
-
News Releases22 hours ago
West High Yield (W.H.Y.) Resources Ltd. Announces Appointment of New Auditor
-
Economics23 hours ago
Don’t Miss the Boom: 7 Dividend Stocks Set to Explode Higher
-
Economics19 hours ago
USD/CHF: Franc suffers longest losing streak since 1975
-
Economics22 hours ago
Ticking Time Bombs: 3 Blockchain Stocks to Dump Before the Damage Is Done
-
Uncategorized12 hours ago
Massive targets all over the joint: Haranga raises cash to bolster maiden 12.5Mt uranium resource at Saraya