Norges Bank Sees a Rate Hike Years Away on Economic Uncertainty

by birtanpublished on October 1, 2020

you really think that actually given
what you said today that you're kind of
diverging you see things a bit
differently
to other you know major central banks
well i think just now there are not many
that many
differences i mean we we had if you go
back to march our poll
then you had a different situation we
had a policy rate at 1.5
but given the pandemic that hit us all
in in during the winter and spring
we are now most of us are now close
to zero and for for our part
we have in addition and undertaking
a number of well let's call them
unconventional
measures measures linked to monetary
policy that we haven't
applied for quite some time
doctor we have a very important policy
as well voluntary policy as well now
yeah governor talk me a bit about
inflation would you be inclined like the
fed
for inflation to overshoot would you be
comfortable with that
well respect with reference to to the
new strategy of this head
one one brief confrontation of that is
that it's it reflects
the feds strengthen the view of having
of
our monetary or have a flexible
inflation targeting system
with a dual mandate with sufficient
attention to the real economy
and to on to the unemployment level we
we have our mandate
and our own version of what you can call
uh flexible information targeting uh and
with the
sufficient focus on the same namely the
real
real economy and we have been for some
time quite relatively flexible
with respect to achieving a specific
number for the inflation governor
tom keane in new york good morning sir
thank you so much for joining us
is dollar strength intrusive upon you
if we see a persistent resilience in the
dollar
does that limit the norwegian tool kit
uh a different card question
we're we're small nor we have small open
economy and when
when a dollar moves our currency and
many other
currencies lose a move as well as you
know uh
we have we have seen even
the last couple of the last days in iran
a week no reason but
i think there's no drama it's nothing
similar to the situation we experienced
and handled in back in in march where we
had to intervene
for the first time since in the late
1990s in our view
now that even the current market
functions functions
quite well close to normal and and we
are
in a very different situation when i
look at the advantages
of norway and we all understand
hydrocarbons and such
you have your own fiscal calculus tell
us about the fiscal pressure you face
given the surge i mean a relative surge
in unemployment
out near 5 i mean are you the last
nation you would think so but are you
under fiscal pressure
as a central bank as a nation no not
well well as a central bank there's no
pressure
from any authority to sort of
coming closer to to what you can do
called
contributing to fiscal policy and as you
know
our fiscal situation as a nation is very
special
we have abundant uh reserves and this
rule of maneuvering fiscal policy has
been
exploited and in in this very
difficult situation we are all into
these days with
the academics so yes fiscal policy has
been
quite expansionary but unlike many other
countries
we have we have uh we have assets
huge financial assets backgrounds
of course yeah governor
when you look at some of the imbalances
that maybe we observe
because of ultra low rates for longer is
there anything that we're under
appreciating is there anything that you
worry about
that we're not looking at yet
oh yeah there are always things to worry
about
from our point of view i mean we are we
are an extreme situation
i think we all have worry about the the
the pandemics
and and how that develops and science
and developments
in most countries including our own has
been quite worrying the last year well
since the summer
so that's the main uncertainty and but
then
and then that this has led to a sharp
historically
sharp downturn in in our economy as well
like in many other countries
and and that has been handled by one by
fiscal policy
and also to some extent monetary policy
which in our case has
contributed to to to fight the downturn
but yes there are always more specific
worries as well uh
one specific area which we mentioned in
our recent report is uh
is we are we are so far we're quite
happy that we have
prevented a deep in this situation a
downturn in the housing market
so housing prices have been the rise
housing prices have been
some somewhat stronger than we
anticipated in the
in the summer but that is a very of
course if that
growth continues fueled by
very low interest rates and and that
also could fuel
uh again uh depth

arising death by households but that is
an area we have a focus on
but so far we are relatively pleased
with the development in our economy

Related Videos

from daily forex this is chris taking a look at the uh bitcoin market here you can see that we have uh found the market to be bullish we have broken above the ...
James fake revenue at deutsche bank has risen by 47 in the third quarter has this good momentum continued in the fourth quarter as well look we're continuin...
from daily forax this is chris taking a look at the um us stock indices this is the s p 500 and you can see that the s p 500 has uh rallied quite a bit did pul...
The capital position now and the confidence you have to deploy that dividend well indeed we have uh we've had a uh a very strong quarter um in which uh you ...
Hi everyone my name is adita and a few years ago i got divorced and became a single mom of two kids and that's when i started to look for ways to invest my ...
Have you ever thought of the true value of gold I mean really the value of something isn't its price it's what you can buy with it that is the true valu...
Hi this is vlad from effects empire euro dollar failed to settle above the resistance at 1.1870 and is trying to get below the support at 1.1830 if this attempt...
from daily forex this is chris taking a look at the uh crude oil marking cwti has gapped a little bit lower and then basically did nothing so uh at this point ...
Rupert what does this all mean for for equities but in general actually asset classes would you buy right now yeah so we are still broadly constructive on risk ...
Today I'm looking back at the Tesla stock on March 17th I did an analysis based on my ambassador diamond analysis the IDB a and I suggested that after its s...
The thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing money leaving money on the table ...
from fx empire this is chris taking a look at the euro dollar and you can see that we are reaching above 118 as new york gets on board and perhaps trying to ma...
from daily forex this is chris taking a look at the euro and the pound you can see the euro has fallen a bit during the trading session here on friday as there...
The crude oil price has had a great recovery off those april lows but it does appear to be struggling over recent weeks so given the resurgence of the coronavir...
The recovery in silver continued into july and in the last week uh the price went somewhat parabolic moving from 19 up to 26 and you can see the sort of volatil...
Now one of the things that almost all millionaires have in common is they have exceptional I mean exceptional communication skills because they recognize that c...
Hi this is vlad from effects empire silver is currently trying to settle above the nearest resistance level at 23.30 if this attempt is successful silver will g...
from daily forex this is chris taking a look at the gold and silver markets you can see gold has smashed into this little short-term downtrend line that i have...
So tell us a bit more about the survey what what are your clients telling you about the lessons learned from this pandemic and what does it tell us about the fu...
At first glance ichimoku charts um can seem somewhat intimidating with a lot going on when we're looking at markets but they're also a really powerful w...