Norges Bank have communicated that the key rate should go further down to zero this year while analysts do not believe in rate changing on next reoccurring Thursday’s rating policy meeting.
There will be a question whether analysts that news agency NTB has talked to are right when they unanimously believe that the rates will remain at 0.5 percent. In addition the chief executer of Norwegian central bank, Øystein Olsen, presented a new monetary policy report and announced the interest rate decision from the Executive Board.
– We do not believe that Norges Bank are going to take special decisions on this meeting. We also believe that most probably there will be no change to their signals about future monetary policy, said by chief economist Øystein Dørum from DNB to NTB.
He emphasizes that the changes in Norwegian economy has been the same as the one expected by Norges Bank since the previous Monetary Policy Report in March. Norges Bank communicated that it is 100 percent likely that the policy rate goes down to 0.25 per cent during this year and 20 percent likely to go further down towards zero.
DNB believe that there will be a sharp cut off of interest rates between a quarter and half a percentage point but that it comes in September.
Source: NTB scanpix / Norway Today