Will mortgages become even more expensive in the future, or is the central bank done with its rate hikes now? That is the big question just before the Christmas peace descends. After 13 interest rate jumps by the central bank over the course of two years, a large majority of market participants expect that Norges Bank will keep interest rates unchanged in December. The probability that the interest rate will remain unchanged is set at 86 per cent in the market, SR-Bank informs news ahead of the interest rate meeting. Signs of a cooling in the economy Expectations that the interest rate peak had been reached were strengthened last week. The companies in Norges Bank’s regional network expected clearly weaker growth prospects and wage prospects than what the central bank has assumed. The central bank published its latest analysis of the economy in the monetary policy report back in September. Ahead of the interest rate meeting, Tore Vamraak, chief economist at Sparebanken Sør, says that he assesses whether there will be a change in interest rates or not. – The companies’ expectations in the regional network were very negative, and much looks bleak in the economy, says the chief economist, who was previously state secretary in the Ministry of Finance. Tore Vamraak is chief economist at Sparebanken Sør and former state secretary in the Ministry of Finance. Photo: Rune Kongsro / Ministry of Finance – Nevertheless, I believe that it would be wise for Norges Bank to raise the key interest rate, out of consideration for the exchange rate and the inflation target, he says. Unemployment still low The price of oil has recently fallen, and the Norwegian krone is also becoming increasingly weak. This leads economists to expect price pressure from abroad when goods are traded in foreign currency. – The interest rate committee will probably also see until unemployment is still at a low 1.9 per cent, he says to news just before the interest rate decision is announced on Thursday morning. He says that if the central bank chooses to raise the interest rate one last time, it is important that the bank also clearly signals that the interest rate peak has now been reached. – It is needed so that households and businesses will have security for the future, and for the markets for new car sales and new home sales to gradually get going again, he says.
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– Wise if Norges Bank raises interest rates – news Norge – Overview of news from different parts of the country
