Today comes a new interest rate decision – news Norway – Overview of news from various parts of the country

Yesterday, the American central bank came with a long-awaited news. After four years, the interest is cut by 0.5 percentage points. At 10 o’clock on Thursday, Norges Bank will announce its interest rate decision. According to Nordea’s chief economist, Kjetil Olsen, we have to wait a long time before we can get such news. – They are going to signal that it is still some time until they are going to cut the interest rate, and we are still holding a button that it will take until 2025. Chief economist at Nordea Kjetil Olsen does not believe that interest rate cuts abroad will give us a lower interest at first. Photo: Håvard Greger Hagen / news The message to the central bank in August was that the interest rate will remain at 4.5 per cent for “a good while”. Olsen guesses that means March 2025. – So we can no longer believe the narrative that we have to wait for cuts outside and then we will get cuts at home? – Yes, we can believe that, but it requires that the krone exchange rate does not continue to weaken. In that sense, the lower interest rates abroad will help. All other things being equal, this will mean a slightly stronger krone. The interest rate cut in the USA had an immediate effect on the Norwegian krone, which strengthened against both the dollar and the euro. Olsen nevertheless points out that there are several other factors that can affect the krone exchange rate. – I think Norges Bank will look at that development. Olsen receives support from senior economist at DNB Knut A. Magnussen. He, too, believes that we must be patient. – We don’t think there will be cuts until March, he says to NTB. 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 setting interest rates 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 policy rate means increased expenses if you have a mortgage 2022 2023 2024 2025 2026 2027 Forecast Norges bank Can cut earlier There is still little hope for Norwegian loan customers. Although the economists agree that there is still some time to go, some open to the possibility that a cut could happen before March. – We think the new interest rate path will indicate around a 50 per cent probability of a cut in December. But, we don’t think there will be cuts until March, says senior economist Knut A. Magnussen at DNB to NTB. Consumer economist Magne Gundersen at Sparebank 1 Magne Gundersen is also open to the possibility. – The earliest Norwegian mortgage lenders can hope for is December, but we have to be prepared for the cut to wait until well into the new year, he says to NTB. Published 19.09.2024, at 08.02 Updated 19.09.2024, at 08.35



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