Once again, the statistics point to things becoming more expensive. – Cold weather and high electricity consumption, especially in the second part of November, contributed to higher electricity prices this month. The rise from October to November this year was far stronger than at Sami time last year, writes section leader in Statistics Norway Espen Kristiansen, section leader on their website. Prices therefore increased by 4.8 per cent between November last year and November this year. – It is a tenth lower than expected. The figure is in favor of Norges Bank not raising interest rates, even if the figure is higher than they hoped for, says chief economist at Sparebank1 Harald Magnus Andreassen. Predictions that the interest rate jump is finished In a few days, on 14 December, Norges Bank will set the key interest rate again. Large changes in prices can cause the policy rate to change. Policy rate The policy rate is Norges Bank’s most important instrument for stabilizing price growth and development in the Norwegian economy. The key interest rate in Norway is the interest that the banks receive on their deposits in Norges Bank up to a fixed amount – a quota. The key interest rate and expectations about future developments in the key interest rate primarily affect the interest rates between banks and the interest level the banks offer on deposits and loans to their customers. Market interest rates in turn affect the krone exchange rate, the prices of securities, house prices and the demand for loans, consumption and investments. Source: Norges Bank When prices rose above expectations in October, several economists expected that Norges Bank would respond by raising interest rates and making your loans more expensive. New predictions came in December that economic activity will slow down this winter and that wage growth will be lower next year, especially because the construction industry has experienced an abrupt halt. This means that economists and statisticians now doubt another interest rate jump, or at least a rate cut next year. It is not yet certain how the price rise will affect this. – Inflation is higher, but lower than the estimate in September. Noregs Bank can pretend to raise it, says Andreassen in Sparebank1. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher interest rate means increased expenses if you have a mortgage
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The rise in prices continues, according to SSB’s consumer price index – prices rose by 4.8 per cent – news Møre og Romsdal – Local news, TV and radio
