Now renta UNDER zero in Sweden and Denmark – so it may affect Norway – TV 2

Now renta UNDER zero in Sweden and Denmark – so it may affect Norway – TV 2

Low interest rates in neighboring countries can contribute to low interest rates in Norway are the new normal, said Governor Øystein Olsen in his annual today.

And Today something happened in the Swedish economy that has not happened in 347 years:

In Sweden it was set a historic clean record when Riksbank’s key interest rate was lowered from zero to minus 0, 1 percent. The aim is to bring up inflation.

Negative rate means that if, for example, loans, you will get interest from the bank rather than having to pay the bank interest. On the other side you will have to pay to have money in the bank.

Get the whole explanation in the video on the top!

Shock

Several Swedish media call Thursday’s interest rate cuts from 0 to minus 0.1 per cent for a shock. When Aftonbladet recently interviewed experts in Swedish banks, said only two of seven that they thought the policy rate would end below zero.

Fear borrow bangs with low rate:

– It is naturally a certain symbolism in this. Now it’s not so much negative, we went from 0 to minus 0.1, but it is nevertheless an important event since we are in a new waters where we have not been before, says Governor Stefan Ingves in Sweden Riksbank.

Thus, following the Swedes by the Danes, who received negative rate in 2012. In Denmark, the interest rate minus 0.75 per cent. This means in practice that they risk having pay to have money in the bank. The experts fear most is a housing bubble that burst.

Governor not very worried

– Many are nervous that house prices will rise too much. We’ve been through a huge housing bubble, therefore, Denmark has been in a serious crisis in more than seven years, says economics columnist Lars Erik Skovgaard in Berlingske Tidende TV2.

So far is not Norges Governor Øystein Olsen very concerned Norwegians mortgage debt, even though it is steadily increasing.

In his annual on the state of the Norwegian economy Thursday night stressed Olsen that high debt creates vulnerability.

Warner

– the risk that mortgage will be defaulted and inflict banks large, direct loss, however small. We have a good social safety net. It provides an insurance whose income falls away, he stated.

Meanwhile warned Olsen that every fourth household may end up with a debt exceeding property value if house prices were to fall by 30 percent .

But for the moment it is rather the ever increasing house prices causes concern.

– Strong growth in house prices and debt may also make it necessary for the government to consider other, targeted measures to mitigate the risk associated with the high debt among households, said Olsen.