– If we now raise interest rates and get a decline in housing construction and so on, when we are struggling with housing shortages. The farmers have invested, we need to invest more so we get down food prices. Now they stop investing because interest rates are rising, says Jan Ludvig Andreassen in the Eika group to news. He is very skeptical that Norges Bank chose to raise the interest rate by 0.5 percentage points. On Thursday, it became clear that Norges Bank will raise the key interest rate to 1.25 per cent. Nothing similar has happened in 20 years. Going forward, the central bank believes that interest rates will continue to rise. A new interest rate hike is announced in August, and that the interest rate will rise to 3 per cent by next summer. – It is the whole understanding of our time. This is not a jab time with extravagant purchases of Porsches like in the 80’s, people invest quite sensibly. And now you should try to put a brake on it as there is really no point in the long run, says Andreassen. He points out that electricity prices, fuel prices and commodity prices, which are rising due to smaller offers from abroad, are difficult to do anything about by raising interest rates. – I think it is not urgent There is also chief economist Kjersti Haugland in DNB, she says she would not have chosen this interest rate hike herself. Haugland thought in advance that the bank would be content to raise the interest rate by 0.25 percentage points. Chief economist Kjersti Haugland in DNB Photo: Inger Johanne Stenberg She agrees with the bank that there is a lot of pressure in the economy right now. But she thinks the outlook in the slightly longer term is less cheerful than the central bank should have. – I do not think it is as urgent in Norway as it is in other countries, not least because the interest rate weapon is exceptionally heavy in the Norwegian economy, in contrast to, for example, the United States, she says to news. In particular, she doubts that unemployment will remain at the same low level as it is today. Norges Bank bases this on its monetary policy report. – I am surprised that Norges Bank thinks they will bring about such a sharp tightening, without unemployment rising at all. It’s a positive story that is drawn, so I doubt it can be such a happy story.
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– This is not a yapping time – news Norway – Overview of news from different parts of the country
