Key interest rate down as Norwegian economy struggles / News / The Foreigner

Key interest rate down as Norwegian economy struggles. Norges Bank's Executive Board decided to reduce the basic interest rate by 0.25 per cent to 1.25 among a weakened oil price but a strong housing price growth. “Growth prospects for the Norwegian economy have weakened,” Norges bank says in a statement, Thursday. The quarter of a percentage point cut comes at the end of a year that has seen oil industry cutbacks and redundancies. 

economy, oil, houses, norway, property



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



News Article

LATEST:

Key interest rate down as Norwegian economy struggles

Published on Thursday, 11th December, 2014 at 12:27 under the news category, by Susanne Tunge Østhus.

Norges Bank's Executive Board decided to reduce the basic interest rate by 0.25 per cent to 1.25 among a weakened oil price but a strong housing price growth.

House on lists
House on lists
Photo: Daft_Lion_Studio/Istockphotos


“Growth prospects for the Norwegian economy have weakened,” Norges bank says in a statement, Thursday.

The quarter of a percentage point cut comes at the end of a year that has seen oil industry cutbacks and redundancies. 

As reported yesterday, austerity measures, which include delaying projects and cancelling drilling assignments, have meant that some 10,000 oil service industry jobs have disappeared this year.

“Activity in the petroleum industry is softening and the sharp fall in oil prices is likely to amplify this tendency. This will have spillover effects on the wider economy and unemployment may edge up ahead,” states the Bank.

House prices are now 6.8 per cent higher than a year ago. It is likely that 2015 will bring bid battles on normal family homes.

“For 2015 we can probably expect an inflation rate of about four percent nationwide, even when taking into consideration that housing prices in Stavanger will fall moderately,” Jan L. Andreassen, chief economist at banking company Eika Gruppen tells business daily Dagens Næringsliv.

So-termed “used house price statistics” compiled by Eiendomsverdi for Real Estate Norway, the national association for Norwegian realtor brokerages, show that seasonally adjusted house prices have risen 12 months in a row this year.

At the same time, household debt is still rising somewhat faster than household income, according to Norges Bank.

The next Norges Bank report will be made public on 19th March 2015 unless the Norwegian economy is exposed to new major shocks.




Published on Thursday, 11th December, 2014 at 12:27 under the news category, by Susanne Tunge Østhus.

This post has the following tags: economy, oil, houses, norway, property.





  
Do NOT follow this link or you will be banned from the site!