Tag Archives: Norges Bank

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.