Thursday it was announced that Norges Bank will keep its key rate unchanged at 1.50 percent.
This was in line with virtually all analysts and economists had expected.
last rate change from Norges Bank took place on 14 March 2012 when the central bank cut interest rates by 0.25 percentage points.
– The reactions showed that the market was surprised that Norges Bank raised the interest rate path with some points in the short term and with the eliminate the likelihood of interest rate cuts that were built in the path of June. Norges Bank’s new court was, however, so close it was possible to get what we had expected, writes Nordea in Friday’s report.
– We were in doubt whether the Bank would adjust downwards the estimate for oil investments in 2015 further, but the did as we assumed; downgraded investments for the year and retained decline of 10 percent for next year, said economists.
Chief Analyst Erik Bruce at Nordea Markets is today’s guest in Economy News Trygve OBI on HegnarTV at. 1:30 p.m..
Norges Bank’s orbit is now pointing towards one rate hike in late 2016 and one in 2017.
Nordea believes that it is based on very optimistic projections for growth in the Norwegian economy, particularly for next year.
– To us it appears that the fall in oil investment is greater than 10 percent next year, which together with the repercussions will pull the growth rate in mainland Norway more down the years. So any increase in interest rates in 2015 and 2016, we have little faith in, type Nordea.
Rate cuts can also be on the agenda again, but the ability of the banks themselves cut their lending rates further could prevent rate cuts.
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