Krone Strengthens as Olsen Signals Tolerance Over Housing Drop
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Norway’s krone climbed as the country’s central bank governor signaled he would tolerate house prices declines and amid signs the labor market and consumer demand are picking up.
The economy can withstand house price declines “over a longer period,” Governor Oeystein Olsen said yesterday in an interview at his office in Oslo. “We’ll be concerned if housing prices and debt levels continue to grow. It doesn’t have to be a concern with a moderate downward reaction in housing prices.”