Three rate cuts unleashed in a year by Norway’s central bank and expansionary fiscal policy aren’t enough to mitigate the blues for consumers, who are at their gloomiest since 2008 as sinking oil prices hit a key sector. The real risk now is that consumers will start acting like they feel amid rising unemployment and as slowing gains in real disposable income will “dent” private consumption more than anticipated, says SEB AB. If the central bank’s forecast for inflation at about 3 percent through 2016 holds true, there won’t be much to take home in terms of wage gains.
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