This week, a record low rate may become even lower

Norges Bank MortgageNorges Bank

Analysts and economists are uncommonly unanonimous before Norges Bank’s monetary policy meeting next week. Each expects Norges Bank to lower the key rate to 0.5 percent.
But it is still not clear  whether the new interest rate cuts by the central bank this time will spill over to the customers borrowing the money or not. This is because the  minimum capital and buffer increased by 1.5 percentage points to 13.5 percent for systemically important banks and by 0.5 percentage points to 11.5 percent for other banks from 1. July this year.
The requirement was tightened in 2013 with a gradual increase and DNB chief executive Rune Bjerke said during the Finance Norway’s capital markets day for international players in London on March 10 that Norwegian banks are well positioned to reach the new level.

Source: NTB scanpix / Norway Today

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