Pursuits
Norway Combats Surging Housing Market Risks as Easing Seen Done
- Government raises countercyclical buffer for banks to 2%
- Norges Bank still leaves small bias for interest rate cut
Olsen: Inflation Expectations Seem Well Anchored
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Norway’s central bank kept its benchmark unchanged and unexpectedly held off on lowering its rate outlook amid growing concerns over imbalances building up in the nation’s red-hot housing market. The krone jumped.
The deposit rate was held at 0.50 percent, as forecast by 21 of 22 analysts surveyed by Bloomberg, Norges Bank said in Oslo Thursday. It kept its outlook for rates bottoming at 0.4 percent. Analysts had expected it to lower the so-called path, in part because of the strengthening krone.