Interest rates kept on unchanged – Aftenposten

Interest rates kept on unchanged – Aftenposten

Thearticleisupdated.

Inlinewithexpectations,NorgesBankdecidedatitsmonetarypolicymeetingonThursdaytokeepkeyinterestrateunchangedat1.5percent.

-Afteranoverallassessment,weconcludedthattherateshouldremainatcurrentlevelsinthenearterm,saidGovernorØysteinOlsenatapressconferenceThursday.

Hesuggestedagradualincreaseininterestratesuntil2015.

Aftenpostenwroteearlierthismonththatonlyoncesincetheturnofdistinction-in2010-havebeencheapertoborrowmoneyinNorway.CentralBureauofStatisticshaspredictedthatinterestrateswillremainlowuntil2017.

WednesdaynightannouncedDanskeBanksaidinastatementthatthelowerrealinterestratesonmortgageagain.

Thebanknowhasthefollowingfixedinterestrates.

• Threeyears:3.15percent
• Fiveyears:3.35percent
• Tenyears:3.90percent

Ageslowest

Thedecisiontolowerinterestrates,comesjustoveroneweekafterthebankloweredrealinterestrateslasttime,writesAdresseavisen.

Thethree-yearinterestrateandfive-yearinterestrateloweredby0.10percentagepoints.InDanskeBank’spreviousreduction,followedbyseveralactors.Reciprocalloweredthethree-yearrateto3.2percent,andDNBrespondedbylaunchingaspecialofferforcustomersunder34years.

YieldsDNBrequiresisnow3.25percentforthree-yearfixedrate,3.50forafive-yearfixedrateand4,20foraten-yearfixedrate.

InDanskeBank’slatestmove,theFinancePortaloverview,however,thatthebankagainischeapestinthecountry.

-Wehaveneverhadsuchalowfixedrate,switchSteinarNielsen,directorofretailbankingatDanskeBank,inapressrelease.

-Willbecompetitive

-Whyareyoudownrealinterestratesfurther,afewdaysafteryouputitdownlasttime

-Wewishtobecompetitiveandhavethebestproductsforourcustomers.Thepricewepayforlongmoneyimpliesthatwecanreducethepriceweofferinthemarket.Wewouldliketointroduceaproductthatistailoredtoyoungborrowersanddemandinthemarket,Nielsenwritesinane-mailadressa.no.

-Youarenowthecheapestinthecountryatfixedinterestrates.Doyouhaveagoalforhowmanynewcustomersyouwillattractyouwiththismove?

-Ourprimarygoalistohavethemostsatisfiedcustomers.Wehavegrowthambitionsforyears,andthisisoneofthemeasureswetaketoreachthatgoal,respondingNielsen.

-Haveyouseenanincreaseinthenumberofmortgagecustomersonthebasisofthepreviousmonetarysinking?
-Wehavetakenmarketsharesteadilyinrecentmonths,andgoodconditionsmakesusnaturallymoreattractivetocustomers,accordingtoNielsen.

Noncheapestrate

AlthoughDanskeBanknowhascheaperrealinterestratesthanvariablerates(3.30percent),thereisstillanotherbankthatsitsatthetopofthelistofbankswithlowestinterestratesoverall.

Sparebank1Telemarknowoperatingwithafloatinginterestrateof2.95percent.Theofferismade,however,onlytocustomerswhopurchasehousinginthebank’scatchmentarea.ThenationalbankwiththelowestinterestrateofferisSkagerakDirektebank.no,with3.04percent.

-Whywillyouinvestsohardonrealinterestrates,giventhatmostNorwegianspreferfloatingrate,Nielsen?

-Thepriceofrealinterestrateisatypeofforwardrateagreements,andwhenitislowitwillreflectthepricetocustomers,answeringDirector.

Readalso:

Predictscheaploansuntil2017

Onlyoncesincetheturnofthemillenniumtherehavebeencheapertoborrowmoney.SSBpredictsthatitwillbudgetuntil2017.