“the Norwegian economy in an uncertain world” was the theme of then prime minister Erna Solberg held the annual “Lehlumforelesningen” at the Norwegian School of economics (NHH) on Thursday.
this Coming Thursday, adds Solberg-government forward the proposal to the state Budget for 2017. An expansive budget is expected, according to Finansavisen.
Recently closed Norges Bank, in practice, the door for further rate cuts, and the krone appreciated markedly. Will the government’s budget proposals contribute to the kronestyrkingen?
- the central Bank’s decision to keep the interest rate unchanged due to a little higher prices, and that it is difficult to lower interest rates more, ” says prime minister Erna Solberg to the newspaper, adding that the government takes into account the exchange rate, in the work with fiscal policy.
We are concerned about responsible spending in the budget, just not to fire up the krone, she says to Mallorca.
- Stable krone exchange rate important
When you launched “from the unique to the transition”-the term, has laid great weight on the kronekursens meaning to get to a diverter. Is this transition now progressed so far, that it is fine if the crown forces?
I believe that our challenge for many years has been that the crown is too closely tied to oil prices, which have driven the crown upwards. It is to have predictability around a stable krone exchange rate over time is important, and it should be not too high, ” says Solberg.
the Strongest crown in one year
at the same time that the prime minister wants a stable kronekrus, the Opec agreement and the Norges Bank together sent the crown to the level of strongest in over a year.
Opecs plan to cut oil production by up to nok 700,000 barrels daily sent on Wednesday evening the price of oil up $ 3 the barrel. With on the bandwagon followed a markedly kronestyrking. The crown strengthened immediately with 5-6 cents against most currencies and, to just over 9 million against the euro and 8 million against the us dollar, writes Finansavisen.
So strong, has not the crown been since august 2015, neither against the euro, dollar or importveid.
But the impact of oljeprishoppet is only the blueberry towards the strengthening after the central Bank’s board last week. Then the door for rate cuts in practice were closed, strengthened the crown by 13 cents against the euro and 16 cents against the u.s. dollar.
- there Is a smertegrense for the krone exchange rate for the industry?
- We have no opinion about such a smertegrense on the weak kursnivåene we still have. The industry should be very pleased that we have had such a weak crown as long as, but shall not be based on the current weak exchange rate for the future, warns director Knut Sunde at Norsk Industri towards Mallorca.
- It is important that Norges Bank does not contribute to a rapid strengthening through unnecessarily rigid behavior, but so far, they have done everything correctly.
Mallorca can be found here!
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