Norges Bank Signals Credit Risk May Be Bigger Threat Than Krone
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The record debt burden of Norwegian households may be a bigger threat to the economy than the risk posed by a strengthening krone, central bank Deputy Governor Jan F. Qvigstad signaled.
The krone has slumped 6.7 percent against the dollar after the bank on Sept. 8 warned that it is willing to take “monetary policy measures” to keep the currency from becoming “too strong.” The krone lost 2.9 percent against the euro and 7.6 percent against the yen. The bank said yesterday the krone was in line with its forecast for the third quarter after leaving its benchmark deposit rate unchanged at 2.25 percent.