The experts agreed low rate – many consumers believe its increasing

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Top Analysts are almost certain that Norges Bank are not doing anything with interest rates and think it will remain at a record level for a long time. However, more consumers now believe in the higher mortgage rate.

TNS Gallup has been commissioned by Nordea to ask consumers about their interest rate expectations.

Nearly one in four (23 percent) believe that mortgage interest rates will rise in the coming year. That is considerably more than those 14 per cent who said the same in a similar survey in February.

Experts think in turn that interest rates will remain low for a long time to come.

Next thursday Norges Bank will announce a new interest rate decision. Analysts news agency NTB believe it will take the Executive Board to do something with the policy rate which has stayed at 0.5 percent since March 17.

No drama

At the last monetary policy meeting on September 22, Governor Øystein Olsen said that the base rate will “most likely remain at current levels in the near term.”

– There is nothing to suggest that Norges Bank has changed their perception. The economy is improving slightly in most regions and industries.

Now that other dramatic things are not happening, there is nothing to suggest rate cuts is now the most obvious plan, says chief economist Harald Magnus Andreassen in Swedbank First Securities.


Source: NTB scanpix / Norway Today

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