Money in Norway
Norway - Money
Norges Bank slows the pace of tightening in November
At its 2 November meeting, the Executive Board of Norges Bank unanimously voted to deliver a 25 basis point increase and bring the sight deposit rate to 2.50%–its highest level since February 2009. The move, which was priced in by markets, comes on the heels of September’s 50 basis point increase and marks a slowdown in the pace of policy tightening.
The decision was driven by a stronger-than-anticipated increase in inflation, which continued to accelerate further above Norges Bank’s 2.0% target in September. Moreover, the labor market is tighter than the Bank had projected. However, some areas of the economy have started to slow down, and the Bank expects lower energy and freight prices to help cool inflation ahead. Norges Bank noted that the effects of its aggressive policy tightening are starting to reflect in the economy, allowing it to raise rates more gradually.
In terms of forward guidance, Norges Bank hinted the sight deposit rate will likely be raised again at its final monetary policy committee meeting of the year, scheduled for 15 December.
FocusEconomics Consensus Forecast panelists are currently revising their forecasts in line with the latest developments.
Norway - Money Data
|Money (annual variation in %)||0.6||5.1||6.0||5.3||4.1|
5 years of economic forecasts for more than 30 economic indicators.
Norway Money Chart
Source: Norway Central Bank and FocusEconomics calculations.
|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
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November 18, 2022
The Norwegian economy gained steam in the third quarter of 2022; GDP growth accelerated to 1.5% in seasonally adjusted quarter-on-quarter terms.
November 10, 2022
Inflation continued its upward trend in October, coming in at 7.5%, up from September’s 6.9%.
November 7, 2022
Industrial output declined 2.4% in month-on-month seasonally-adjusted terms in September, which contrasted August's 3.1% increase.
November 2, 2022
At its 2 November meeting, the Executive Board of Norges Bank unanimously voted to deliver a 25 basis point increase and bring the sight deposit rate to 2.50%–its highest level since February 2009.
October 10, 2022
Inflation resumed its upward trend in September and came in at 6.9%, up from August’s 6.5%.