Norges Bank governor warns against oil money spending

Interest rateNorges Bank. CEO Øystein Olsen. Photo Norges Bank

Governor Øystein Olsen warns Norwegian politicians against pouring more oil money into the economy.

Today’s oil money spending must be tightened, was the clear warning of Olsens when he showed up to an open hearing in the Finance Committee in Parliament, on Thursday.

Olsen noted that he already in his annual address in 2015 warned the politicians against oil spending, and he reiterated the warning this year. In the previous year Olsen called for a downward revision of the guidelines on spending, from today’s four percent of the fund’s value.

– I’ll be brief and hopefully clear. From a historical perspective, oil spending should have peaked. During my annual address in 2015, I was even stricter than three percent. The message from that time is reinforced by the current level, said Olsen when he was given a direct question on whether it is fine to spend as much oil money as we do today.

 

Source: NTB scanpix / Norway Today

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