FOREX TradingCharts.com

Financial News: Norges Bank Sees Rates At Zero For Next

Norges Bank Sees Rates At Zero For Next Couple Of Years

06/18/2020 - 12:36:00 (RTTNews)

(RTTNews) - Norway's central bank left its key interest rate unchanged at zero on Thursday after a surprise cut in May and signaled that it is set to remain at the current level over the next few years.

The Monetary Policy and Financial Stability Committee unanimously decided to keep the policy rate unchanged at zero percent, Norges Bank said in a statement. That was in line with economists' expectations. In May, the rate was cut from 0.25 percent after a cumulative 125 basis points reduction in two extraordinary sessions in March from 1.50 percent.

"The Committee's current assessment of the outlook and balance of risks suggests that the policy rate will most likely remain at today's level for some time ahead", Norges Bank Governor Oystein Olsen said.

"The policy rate forecast implies a rate at the current level over the next couple of years, followed by a gradual rise as economic conditions normalise," Norges Bank said. The central bank said activity has picked up faster than expected since its May policy session.

Unemployment has fallen more than anticipated and oil prices have risen, the bank said. However, activity remains substantially lower than at the start of the year. "There is considerable uncertainty surrounding the path to recovery," the bank said. Low interest rates are helping to accelerate the return to more normal output and employment levels and thus, reduce the risk of unemployment becoming entrenched at a high level and of inflation becoming too low further out.

That said, a long period of low interest rates could increase the risk of a build-up of financial imbalance, the bank pointed out.

In the Committee's assessment, the outlook and balance of risks imply a very expansionary monetary policy stance, the Norges Bank said.

The central bank also advised the Ministry of Finance to keep the countercyclical capital buffer rate for banks unchanged at 1.0 percent.

The rate was lowered from 2.5 percent to 1.0 percent in March. A lower buffer rate reduces the risk that tighter lending standards could amplify an economic downturn, the central bank said.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


German ZEW Economic Confidence Weakens In July (12 min(s), 21 sec(s) ago)
(RTTNews) - German economic sentiment weakened in July, survey data from the ZEW - Leibniz Centre ...Full Story»

China's Export Increase Unexpectedly (01 hr(s), 47 min(s), 21 sec(s) ago)
(RTTNews) - China's exports grew unexpectedly in June as easing of the coronavirus containment ...Full Story»

Japan Industrial Production Decline More Than Estimated (02 hr(s), 23 min(s), 21 sec(s) ago)
(RTTNews) - Japan industrial production declined more than estimated in May, final data from the M ...Full Story»

Germany June Inflation Confirmed At 0.9% (02 hr(s), 33 min(s), 21 sec(s) ago)
(RTTNews) - German inflation rebounded from a 45-month low in June, latest data from Destatis conf ...Full Story»

UK Economy Expands In May (03 hr(s), 03 min(s), 21 sec(s) ago)
(RTTNews) - The UK economy expanded in May after contracting the most on record in April, as measu ...Full Story»

Malaysia Jobless Rate Climbs For Fourth Month (03 hr(s), 32 min(s), 21 sec(s) ago)
(RTTNews) - Malaysia's unemployment rate rose for the fourth straight month in May, data from ...Full Story»

Australia Business Confidence Rebounds In June: NAB (04 hr(s), 35 min(s), 21 sec(s) ago)
(RTTNews) - Australia's business confidence and conditions rebounded in June, survey data from ...Full Story»

China's Exports Rise Unexpectedly (04 hr(s), 57 min(s), 21 sec(s) ago)
(RTTNews) - China's exports grew unexpectedly in June, data from the General Administration of ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

German ZEW Economic Confidence Weakens In July

07/14/2020 - 05:35 AM (RTTNews)
(RTTNews) - German economic sentiment weakened in July, survey data from the ZEW - Leibniz Centre ...Full Story>>

China's Export Increase Unexpectedly

07/14/2020 - 04:00 AM (RTTNews)
(RTTNews) - China's exports grew unexpectedly in June as easing of the coronavirus containment ...Full Story>>

Japan Industrial Production Decline More Than Estimated

07/14/2020 - 03:24 AM (RTTNews)
(RTTNews) - Japan industrial production declined more than estimated in May, final data from the M ...Full Story>>

Germany June Inflation Confirmed At 0.9%

07/14/2020 - 03:14 AM (RTTNews)
(RTTNews) - German inflation rebounded from a 45-month low in June, latest data from Destatis conf ...Full Story>>

UK Economy Expands In May

07/14/2020 - 02:44 AM (RTTNews)
(RTTNews) - The UK economy expanded in May after contracting the most on record in April, as measu ...Full Story>>

Do not sell my personal information

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.