Wednesday, September 26, 2007

Norway’s central bank raises interest rate to 5%

Interest Rates up again

Wednesday’s decision to raise the main interest rate was bad news for nervous home owners, already feeling the financial pressure after 12 hikes in the main interest rate since 2005. But governor of Norway's central bank, Svein Gjedrem, pointed to a "stronger than expected" economic growth and an inflation on the rise, and raised the interest rate once again by a quarter point.

Posted by anthony @ 08:08 PM (851 views)
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6 thoughts on “Norway’s central bank raises interest rate to 5%

  • In defence of currency

    And to prevent inflation

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  • Even in UK the interest rates might be left at the given level because of the credit crunch.
    But if you look at inflationary pressures the with food up, petrol up every thing up.
    The inflation will rise. Hence due to leaving them interest rate low today they will see a bigger burst

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  • errr….

    hanji

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  • Other articles in the same newspaper suggest that 40% of the Norwegian people think house prices will fall in the coming year. This compares to 5% expecting a fall in a poll at the same time last year.

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  • What do you think will happen to the Norwegian currency?

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  • The Norwegian currency is strong. It went up a bit yesterday but only modestly because the bank gov. had said that they will reassess the situation next month and take action as necessary. The Norwegians don’t seem to have been affected by the turmoil – it seems at the moment to be largely confined to the stock market – by some economists were shouting off yesterday that rates shouldn’t be put up because the credit crunch will force banks to raise interest rates anyway.

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