– I believe it is entirely appropriate that Norges Bank lowers interest rates now, says Professor Ragnar Torvik at Norwegian University of Science and Technology (NTNU) to Dagens Næringsliv.
He said oil prices fell from over $ 110 a barrel in June to under $ 70 now makes what was correct rate when not correct rate now. He therefore recommends the Bank to cut interest rates by a quarter percentage point on Thursday’s monetary policy meeting.
Also Professor Steinar Holden at Oslo University recommends a clean cut of 0.25 percentage points.
– Oil Fall lower oil investments have negative consequences for the Norwegian economy. Unemployment is rising, and it’s hard to get a job now. This speaks clearly to lower interest rates. I agree that it might be wise to be early and not afterwards, says Holden said.
Both Holden and Torvik sitting in newspaper clean panel, which gives advice on what Norges Bank should do. The other three members of the panel, Hilde C. Bjørnland BI Knut Roed at the Frisch Centre and Kjersti Haugland DNB Markets, believes there are tough times, but still recommends not rate cuts now. (© NTB)
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