Tag Archives: Norges Bank

Economic perspectives by Øystein Olsen, Governor, Norges Bank

Annual address by Governor Øystein Olsen to the Supervisory Council of Norges Bank on Thursday, 18 February 2021.

One year ago, I stood here and delivered the annual address to 300 guests. This year is different. This evening there are no guests physically present at the central bank. The contrast with last year could hardly be greater.

The same also goes for the theme running through this evening’s speech – the Covid-19 pandemic. Not a trace of it can be found in last year’s speech. Yet, contagion was lurking right outside our borders. We sensed that something was brewing. Norges Bank was in the process of revising down its economic forecasts. The employees at our Shanghai office had been sent home, yet we did not foresee how far-reaching the outbreak in Wuhan would be. Two weeks after delivering last year’s speech the first case was recorded in Norway – soon thereafter, Norway went into lockdown.

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Markets Insider: Norway Central Bank Keeps Rate Unchanged

(RTTNews) – Norway’s central bank kept its key interest rate unchanged at zero, as widely expected, on Thursday.

The Monetary Policy and Financial Stability Committee unanimously decided to retain the policy rate at zero percent, Norges Bank said in a statement.

Due to the increased Covid-19 infection rates and more containment measures, Norway will likely put a brake on the upswing in the coming period, the bank noted.

Read entire article here

E24: Norges Banks milliardkjøp vekker internasjonal interesse

I juni vil Norges Bank kjøpe kroner for 2,3 milliarder per dag. Det er det høyeste noensinne, og skjer for å dekke økte utgifter til redningspakker i coronakrisen.

Pengene tas fra Oljefondet, som er investert i utlandet, og må derfor veksles inn i norsk valuta.

– Vi har fått en del spørsmål fra utenlandske hedgefond om dette, og det har kommet mer de siste ukene, sier valutastrateg Joachim Bernhardsen i Nordea Markets til E24.

– Norges Bank har jo kjøpt kroner lenge, men volumene begynner nå å bli så store at det tiltrekker internasjonal oppmerksomhet.

Les hele saken HER

Press Release: Federal Reserve announces the establishment of temporary U.S. dollar liquidity arrangements with other central banks

The Federal Reserve on Thursday announced the establishment of temporary U.S. dollar liquidity arrangements (swap lines) with the Reserve Bank of Australia, the Banco Central do Brasil, the Danmarks Nationalbank (Denmark), the Bank of Korea, the Banco de Mexico, the Norges Bank (Norway), the Reserve Bank of New Zealand, the Monetary Authority of Singapore, and the Sveriges Riksbank (Sweden). These facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global U.S. dollar funding markets, thereby mitigating the effects of these strains on the supply of credit to households and businesses, both domestically and abroad.

These new facilities will support the provision of U.S. dollar liquidity in amounts up to $60 billion each for the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Korea, the Banco de Mexico, the Monetary Authority of Singapore, and the Sveriges Riksbank and $30 billion each for the Danmarks Nationalbank, the Norges Bank, and the Reserve Bank of New Zealand. These U.S. dollar liquidity arrangements will be in place for at least six months.

The Federal Reserve also has standing U.S. dollar liquidity swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.

For media inquiries, call 202-452-2955.

CNBC/Reuters: UPDATE 2-Norway wealth fund earned a record $180 bln in 2019

OSLO, Feb 27 (Reuters) – Norway’s sovereign wealth fund, the world’s largest, made a 19.9% return on investment last year, earning a record 1.69 trillion Norwegian crowns ($180 billion) as stock markets rallied, it said on Thursday.

The $1.1 trillion fund’s return for the year was stronger than that of its benchmark index, it added.

“2019 has been a very good year for the fund … this is the greatest increase in value in a single year in the fund’s history,” said central bank Governor Oeystein Olsen, who chairs the fund’s board.

Read entire article HERE.

Economic Perspectives: Address by Governor Øystein Olsen to the Supervisory Council of Norges Bank and invited guests, 13 February 2020

“We are now moving into the final phase of a period where domestic raw materials and energy sources have provided an essential basis for economic expansion. Hereafter, growth must increasingly rely on the production of finished goods in areas where we do not have a natural advantage.”[1]

The same could be said about the challenges facing the Norwegian economy today. But this quote is from 50 years ago – from the annual address by central bank governor Erik Brofoss on 16 February 1970.

The 50th anniversary of the first oil discovery on the Ekofisk field was commemorated in October last year. Aptly enough, this took place on the same day as the Government Pension Fund Global (GPFG) topped NOK 10 000 billion.

Read entire address HERE.

Bloomberg TV: Norway’s Olsen Says Central Bank Is Not Hawkish

Norges Bank Governor Øystein Olsen discusses interest rates, the krone and global economic risks after the central bank kept its deposit rate at 1.50% on Thursday, as expected, and stuck to its main message that a tightening cycle started over a year ago has now been shelved. Olsen speaks with Bloomberg’s Jonas Cho Walsgard in Oslo.

Watch the full interview HERE.

Reuters: Alone among peers, Norway raises rates, eyes two more hikes

OSLO (Reuters) – Norway’s central bank raised its main interest rate on Thursday, as expected, and said it may hike again in September and in the first half of 2020 as domestic strength trumps a global economic slowdown, strengthening the crown currency.

The bank raised its key policy rate to 1.25% from 1.0%, in line with the forecast of 27 of 29 economists in a Reuters poll.

Following the unanimous decision, the crown rose 1% to trade at 9.6713 to the euro at 0915 GMT, and was up by 1.6% for the day against the dollar to 8.5634.

“Our current assessment of the outlook and balance of risks suggests that the policy rate will most likely be increased further in the course of 2019,” Governor Oeystein Olsen said in a statement.

Read entire article HERE.

Reuters: Norway central bank survey sees stronger growth

OSLO, June 11 (Reuters) – Norwegian companies in the last three months increased their output at the fastest pace since 2012 and production is set for further strong growth in the time ahead, a central bank business survey showed on Tuesday.

“Enterprises expect output growth to remain firm ahead and are planning for solid investment growth,” Norges Bank said.

Read entire article HERE.

Bloomberg: Oil Riches Put Norway on Divergent Path Toward Higher Rates

Norway’s oil riches are allowing the country to avoid the slow growth, slow inflation trap that’s gripping much of the developed world.

Its central bank on Thursday raised its key interest rate for a second time since September and signaled there’s more to come.

After delivering a rate increase to 1 percent, Norges Bank Governor Øystein Olsen flagged that another hike could come as soon as June, sending the krone soaring. The governor, who also oversees Norway’s $1 trillion wealth fund, acknowledged that his “oil-driven” economy sets his country apart.

Read entire article HERE.