Alexa

Norway could cut rates if currency strengthens

Norway could cut rates if currency strengthens

Central bank governor Oeystein Olsen says his small, oil-rich nation could cut interest rates if the influx of foreign currency investments risks increasing the value of the Norwegian krone too much.
In Thursday's speech, Olsen says that following Switzerland's decision to introduce an exchange rate value cap on the Swiss franc, Norway's krone "appreciated sharply" as investors shifted focus.
The Swiss franc has attracted huge investor interest amid uncertainties related to the euro, raising fears it could drive it into recession.
Since Switzerland's decision Tuesday, the krone has appreciated to a nine-year high against the euro, trading at 7.55 kroner.
Olsen says Norway won't adopt the Swiss measures, but could cut its interest rate.


Updated : 2020-12-02 00:21 GMT+08:00