Thursday , April 22 2021

Statistics Norway predicts a slight increase in interest rates | DN

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Statistics Norway (Statistics Norway) predicts a slight increase in interest rates, according to their new forecasts for the Norwegian economy.

The agency believes Norges Bank will establish a key rate in two weeks, but then predict only two interest rate increases over the next three years.

"It's good in the Norwegian economy, and the increase will continue to show some confidence, but the gradual increase in trade tensions will also weaken the Norwegian economy," says SSB researcher Thomas von Brach.

The agency believes that the increase in the Norwegian economy will continue this year, but that it will decrease from next year.

Higher salary growth

In the past six months, the vast majority noted that the housing loan became more expensive, as the Norges Bank set the key rate first last fall, and then in March this year.

Banks quickly monitored the increase in mortgage rates for their clients, and the average mortgage rate was slightly above 2.5 percent.

The Norges Bank said the interest rate will increase, because it goes well with the Norwegian economy and because people get better advice. The same applies to Norway Statistics.

The agency believes that wage growth will increase to 3.3 percent this year and 3.5 percent by next year.

– Why should interest rates now increase? Well, because the economy is in balance. Then it's not natural that the interest rate is abnormally low, as it is now. We believe that the average lending rate will reach 3.6 percent, says von Brach.

Leveling in investment in oil

Norwegian statistics believe that the Norwegian economy is fine and predicts economic growth of 2.5 percent, measured in gross domestic product. This is slightly lower than the estimate for Norges Bank.

"Increased oil investments are the main reason why the Norwegian economy is fine," von Brash said.

The agency has increased its estimates for oil investments this year to 14.5 percent, and predicts a fall of 2.5 percent by 2020.

РIt is mainly development projects by Johann Sverdrup Phase 2 and Johan Kastberg contributing to this. Although it is expected that several investment projects will begin in the coming years, this will be contrary to lower investments in existing projects. That is why we expect a fairly flat development of oil investments in the period from 2020 to 2022, says von Brah.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like to share our cases using the link, which leads directly to our pages. Copying or other forms of use of all or part of the content may occur only after written approval or as permitted by law. For further information, please see here.

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