Norges Bank explains the reason for the increase is that price growth has been stronger than expected. In the press release, they write that price growth has been significantly higher than forecast and is clearly above the target of 2 per cent. There is high activity and little free capacity in the Norwegian economy. Unemployment has fallen slightly more than expected and is at a very low level. MORE EXPENSIVE LOANS: Central bank governor Ida Wolden Bache will probably raise the key interest rate again. Photo: Stian Lysberg Solum / Stian Lysberg Solum – There is a need for a clearly higher interest rate to dampen the pressure in the Norwegian economy and bring inflation down towards the target, says central bank governor Ida Wolden Bache. People’s economy works on BELIEVE IN MORE INCREASE: news’s economic commentator Cecilie Langum Becker. news’s economic commentator Cecilie Langum Becker says this will mean that a family with a loan of NOK 3.5 million will have more than NOK 1,000 more to pay per month. – The vast majority will manage this increase, says Langum Becker. As early as September, there may be another interest rate hike. – If you keep the house anyway, YOU WILL GET IT: Daniel Raaen and Birgitte Kalbakk have taken measures to cope with interest rate increases. Photo: Aina Indreiten / news Daniel Raaen in Tønsberg usually follows the rent. He is always looking for better deals. He quickly logs into the online bank and sees that he has an interest rate of 2.65 per cent. Daniel Raaen is ready to make another round of calls to the bank. He has saved a lot by being an active customer. – We will keep the house anyway, he says. They have lived there since 2014. He describes the loan interest back then as “free”. He still has steel control, and sees that they have opportunities to cut if necessary. – Then consumption has to go down, he says, and adds that they also have things they can sell. – It would rather be a smaller boat and less luxury. Getting rid of the house is completely out of the question. Then it is better to negotiate the price of electricity, insurance and other fixed expenses, he believes. Norges Bank has announced that people must expect a mortgage interest rate of around 4.5 per cent during the next year. Read also: There could be two double interest rate hikes before the autumn holidays. – Paracetamol for the financial headache Consumer economist Silje Sandmæl works at DNB. Higher interest rates can be medicine against higher prices in general, she explains. ADVISER: Consumer economist at DNB, Silje Sandmæl. Photo: Stig Fiksdal / DnB – Although it may seem incomprehensible to many, a higher interest rate should act as a Paracet for the financial headache many are currently feeling due to high prices. When the policy interest rate increases, the mortgage interest rate usually follows suit. And since most people have mortgages, increased mortgage expenses mean less money for consumption. And when we spend less money on goods and services, prices usually go down. – The interest rate has been abnormally low for a long time, so that it should rise should not come as a surprise, says Sandmæl. The Norwegian Consumer Council: Check what you are paying Director of the Norwegian Consumer Council, Jorge Jensen, advises people to find out how much they pay in interest at the bank and what fees they charge. CHECK THE BANK: Director of the Consumer Council, Jorge Jensen. Photo: Håkon Mosvold Larsen / NTB He recommends going to Finansportalen.no There you will see what Norwegian banks have as a guide price. – It always makes sense to bring this knowledge into the dialogue with the bank, he says to news. Jensen says you should also proceed thoroughly and examine different banks’ interest rates when you consider binding it. – I think at least for those who are concerned about the level of interest rates, binding the interest rate may make sense. Yesterday, a typical fixed-rate loan was around 4 percent. It is not really higher than what the interest rate has historically been. It is not too late, he says. Read also: This is how the policy interest rate has changed in recent years Daniel Raaen in Tønsberg is not interested in fixed interest rates. – I have friends who have done it and regretted it, he says. HAVE FAITH: The cohabiting couple in Tønsberg believe they will be able to cope with the increases to come. Raaen works as a salesperson, and partner Birgitte Kalbakk works in a nursery school. Photo: Aina Indreiten / news
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Norges Bank sets key interest rate to 1.75 – news Vestfold and Telemark – Local news, TV and radio
