Norway Credit Growth Slows as Corporate Debt Expansion Abates

Norwegian credit growth slowed in July as company borrowing decelerated after the country’s central bank indicated it may start raising rates at the end of the year.

Credit growth rose an annual 6.9 percent, compared with 7.1 percent in June, Statistics Norway said on its website today. Household credit growth was 7.2 percent, up from 7.1 percent in June while borrowing by non-financial enterprises slowed to 6.7 percent from 7.1 percent in June, the office said.

The central bank last week stuck to a plan of raising rates as soon as December, after keeping the main rate unchanged at 1.5 percent for a third meeting. The bank has cut rates twice since December to curb krone gains that have hampered exports. Rate cuts have fueled borrowing and pushed up house prices in the world’s third-richest nation per capita.

To contact the reporter on this story: Josiane Kremer in Oslo at jkremer4@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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