(Full overview in a minute: Get “This is what newspapers are writing about the economy today” as a newsletter every morning. Register here – it’s free)
A record weak krone means inflation will take time to ease in Norway (Julia Skretting, Researcher at Macroeconomics Group, Statistics Norway) (TN)
Growth in the krone exchange rate will have a significant impact on inflation going forward. A record weak krone boosts import prices, but ultimately much of the price increase from a weak krone comes from higher export prices, which gives rise to wage growth. A persistently weak or further weakened krona, and without a monetary policy response, wage growth will help keep inflation high in the coming years. read more
Krone strengthens after interest rate announcement (E24)
The US Federal Reserve decided to keep interest rates unchanged on Wednesday evening. At the same time, the Federal Reserve surprised by announcing three interest rate cuts next year. The dollar weakened sharply after the news, so it now costs NOK 10.76. It is almost 20 cents cheaper than it was just before the result was announced. At the same time, the krone has strengthened significantly against the euro. One euro is now NOK 11.72. read more
I think the krona will be decisive for interest rates: – Is there an elephant in the room? (E24)
Most economists expect Norges Bank to keep interest rates steady, but the first rate cut could take some time. According to the chief economist, the krone will be decisive. – The crown is the elephant in the room here, and it’s the least talked about. Olav Sen at Storebrand knows that imported inflation has direct consequences going forward. On Thursday, Norges Bank announces a new interest rate decision and most economists now expect the key interest rate to remain unchanged at 4.25 percent. – Chief Economist John L. said that driving my interest rate forecast is the krone exchange rate. Andreasen says on eika Groupon. read more
Low Nibor since July (Finansavisen)
Norwegian money market interest rates are now falling. Magne Østnor at DNB Markets believes this could mean cheaper lending rates. The Norwegian money market interest rate Nibor has already ended its rise in July. After this, the three-month interest rate has remained entirely above 4.70 percent, although Norges Bank has not only raised the key interest rate twice in the meantime, but also announced the final increase on Thursday this week. On Wednesday, the interest rate was below 4.60 percent. The decline will likely continue, says Magne Østnor, currency strategist at DNB Markets. NIBOR is often considered the most important factor behind Norwegian lending rates. For business customers, the loan interest rate is usually fixed as NIBOR and loan surcharges depending on the borrower’s industry and creditworthiness. For mortgages, the level of Nibor is often higher than the level of the prime interest rate. – Does falling Nibor mean a move towards lower interest rates for banks’ loans? – Swedish banks have started offering lower loan interest rates to their customers. This development is not entirely different, Østnor says, stressing that he is speaking here as an analyst. read more
Economists believe in unchanged interest rates (Finanasavisen)
On Thursday, Norges Bank will announce the new interest rate decision. Most economists expect the central bank to leave the key interest rate unchanged at 4.25 percent. read more
Interest rate has reached a peak: that is why Norges Bank has not raised it further (Manager of Gunner Stavroom, Netavisen)
Central Bank Governor Ida Woldenbach left interest rates unchanged, warning of great uncertainty about the way forward. read more
The US Federal Reserve expects three interest rate cuts next year (E24)
Interest rates in the US remain unchanged, but the prospect of a further rate cut in 2024 weakens the dollar sharply. – This makes Norges Bank’s job easier, says Kirre M., Chief Economist at Sberbank 1 SR-Bank. Knudsen says. He points out that the Fed is lowering the interest rate outlook “significantly”. – For Norway, this is good, as many fear the central bank will be higher on the interest rate path. In isolation, this makes Norges Bank’s job a little easier and the interest rate will also remain stable here at home, he says. read more
These foods are now 40 percent more expensive than they were two years ago (NTB)
Prices of salmon, tomatoes and berries have risen more than 40 percent in two years. read more
2023 – A sad year for all borrowers (E24)
Higher price growth, higher wage growth, higher interest rates. A typical family has NOK 50,000–60,000 less to live on this year alone. read more
Terje Aasland at electricity prices of up to NOK 3: – We do our best (Finansavisen)
– Oil and Energy Minister Terje Ösland (AP) says that we are doing everything we can to get more renewable energy production. But this week the tax on power generation has increased. – You came up with a higher price contribution last year, and now wind power will have a basic rental tax. Raising taxes is not the way to increase production, is it? – Last year’s high price contribution was completely legal and absolutely necessary for our implementation. We were in a situation where we could not use more oil money. We had to redistribute, and we got rid of those who profited the most from the price situation in the energy sector. read more
Setting up a team to crack the code “fighting” the new pension system (E24)
Labor Minister Donjay Brenna (AP) asks LO and NHO how the new pension system will work for overworked people. read more
Norway will benefit from nuclear power (Finansavisen)
Svein Harald Øygard continues his rage against Norsk Kjernekraft with straw man arguments and false claims, write Håvard Kristiansen and Jonny Hesthammer. read more
Wind Power Solution: – No champagne here (TN)
Significant progress in new offshore wind power. But industry players say the settlement in Storting will take a hit that could scare off investors who already own wind power. read more
The role demands cheap loans for agriculture (Finansavisen)
The Ministry of Finance ordered Finanstilsynet to reduce the risk weight on loans for agricultural assets from 100 to 50 percent. read more
Norwegian innovation support is in line with EEA rules, Esa concludes (NTB)
EFTA’s monitoring body, Esa, has concluded that the support programs offered by Norsk Katapult do not contravene EEA rules. read more
LO is positive for changes in capital requirements of banks (NTB)
On Wednesday, the finance ministry issued a package of measures that included changes in banks’ capital requirements. LO is positive about the project. A package of measures by Finance Minister Trygve Slacksvold Vedum (SP) aims to improve the framework conditions for small and medium-sized banks across the country. read more
130 people get a bridge for NOK 1.3 billion (online newspaper)
Ytre Sula currently has around 130 permanent residents, as well as several cottages. The cost of the bridge is 1.3 billion NOK. In practice, this bridge costs 10 million tax kroner per citizen. read more
The departure of the creditor manager should not hinder the growth of the debt collection industry (Rune Heimstad, Head of Fair Collection) (Financewissen)
Debt collection industry should reduce fees for large claims. read more
Former oil director Vår Energi resigned after 11 months (Finansavisen)
Former oil director Ingrid Sølvberg concluded at Vår Energi: – It didn’t turn out as expected. read more
Capitalist media is needed (Torbjørn Røe Isaksen, E24)
I light a small candle for the Media of Shipstead to go public. read more
The NOK 110,000 billion question (Terje Erikstad, TN)
How can the colossal loss of gas and oil be distributed in a “just, orderly and fair” manner? read more
The central bank has kept interest rates unchanged – seeing three rate cuts next year (TN)
The US Federal Reserve is probably done with interest rate hikes and is now hinting at three interest rate cuts in 2024: – I don’t think it’s going to happen, chief economist says. – The central bank is considered “soft”, as we can see from the market’s immediate reaction. I don’t think this will happen – the central bank is now much closer to the interest rate market than previously thought, says Harald Magnus Andreasen, chief economist at Sberbank 1 Markets. read more
————-
read more: This is what the newspapers wrote about the Oslo Pors on Thursday, December 14
“Music geek. Coffee lover. Devoted food scholar. Web buff. Passionate internet guru.”
