Norges Bank Appointee Says Krone to Steer Rate Moves

Norway’s central bank is likely to increase the role of the krone in decision making as Governor Svein Gjedrem’s successor signals the bank can’t afford to raise interest rates if policy makers abroad don’t do the same.

“Norges Bank cannot go alone, for sure; international developments including interest rate paths abroad will potentially affect” policy “via the exchange rates,” said Oeystein Olsen, who today was appointed central bank governor starting Jan. 1, in an interview in Oslo. Gjedrem completes his second and final six-year term on Dec. 31.