– This is far higher than most experts had foreseen beforehand, says Cecile Langum Becker, news’s economic commentator. There was tension linked to Thursday’s interest rate meeting and monetary policy report. Ahead of the decision, it was expected that the interest rate screw would be tightened even harder. At 10.00 on Thursday morning it became clear that the key interest rate will be increased by 0.5 per cent. The policy interest rate is now 3.75 per cent. – If we do not raise the interest rate, prices and wages can continue to rise rapidly, and inflation will take hold. Then it can be more expensive to bring price inflation down again, says central bank governor Ida Wolden Bache. Thought the peak would end at 3 per cent In December last year central bank governor Ida Wolden Bache said that monetary policy, i.e. the many interest rate hikes, has started to have a tightening effect. In the interest rate forecast at the time, it was believed that the top was 3 percent. In May at the latest, chief economist Kjersti Haugland at DNB Markets said that she would not be surprised if the key interest rate ends up at 4 per cent in the autumn. Since autumn 2021, the key interest rate has been stepped up to cool down the economy. Since August 2021, when the policy rate was 0.00 per cent, it has been set ten times. Thursday’s rate hike will therefore be the eleventh since then.
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Norges Bank with double interest rate hike – increases 0.50 percent – news Norway – Overview of news from different parts of the country
