Chief economist critical of Norges Bank’s expected interest rate hike

Jan Ludvig AndreassenPhoto: Terje Pedersen / NTB
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Chief economist Jan Ludvig Andreassen in the Eika group believes that the expected interest rate hike from Norges Bank on Thursday is unnecessary.

On Thursday, a new interest rate meeting will be held at Norges Bank. It has previously been announced that the interest rate will be raised by 0.25%, but chief economists at several banks have recently stated that they believe the interest rate increase could be up to twice as high.

The interest rate hikes are an attempt to bring down inflation, which has risen sharply in recent months.

Chief economist Jan Ludvig Andreassen in the Eika group told Dagbladet’s Børsen that he believes further interest rate hikes are unnecessary at the moment. 

He points to, among other things, the lack of growth in the Norwegian economy. 

“I think markets and politicians have not fully realized how painful these increases are and how unnecessary they are,” he said.

“Regardless of whether they raise it by 0.25% or not, there will be a blowout in the autumn. The use of oil money is going to rise sharply,” Andreassen said.

He proposes raising the inflation target to 3% instead of the current 2%. 

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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