Macroeconomics
Strong rise in house prices and increased debt growth prevents the Norges Bank to cut interest rates.
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Norges Bank has decided to keep the key rate unchanged at 0.50 per cent, says the central bank in a press release Thursday.
the Interest rate has been unchanged since march last year, when it was cut from 0.75 to 0.50 per cent.
In advance waiting 12 of 12 economists an unchanged interest rate, according to TDN Finans.
– So we are now considering the prospect, the key policy rate should most likely remain at the current level in the near future, ” says governor Øystein Olsen in a press release.
house prices and debt prevent interest rate cuts
the central Bank shows that the expected key rates among Norway’s trading partners has increased since september.
the oil price has increased and is slightly higher than expected, while the crown has appreciated more than assumed. There are prospects that inflation will be lower than estimated and that the activity in the Norwegian economy takes somewhat slower than expected in september, called it in the press release.
Norges Bank also refers to that the outlook for the consumer price index and capacity utilisation in isolation, in favour of a lower key policy rate. At the same time believe the central bank that the strong growth in house prices and household debt increased the risk of an abrupt decline in demand forward in time.
– A lower key policy rate increases the risk that the growth in house prices and debt will shoot further speed. The risk for the buildup of financial imbalances and uncertainty about the implications of a lower key policy rate now speak to go carefully forward in the rentesettingen, called it.
Waiting higher boliglånsrenter
In Norges Bank’s monetary policy report shows that the number of banks has increased boliglånsrentene something the last few months. The central bank expects household lending rates is expected to be higher in the near future, than it la to the ground in september.
In addition, the Norges Bank to that activity in the Norwegian economy takes a slower than projected in september. It pulls forward the prospects of lower oljeinvesteringen to the next year will help to curb the growth. However, it is pointed out that the state budget for next year indicates an expansive fiscal policy in the years to come.
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