Wednesday, December 16, 2009
While Bernanke is preparing to hit the TV circuit (after hiring Obama’s exhausted teleprompter team) to cash in on his Time Warner accolade, even as he is set to do nothing at all about the liquidity bubble forming in every aspect of the economy, the much more logical and efficient country of Norway is doing the right thing, and in making sure its economy does not overheat, has raised interest rates by 0.25% to 1.75%. The target rate: 1.25%-2.25%. In other news: Goldman Sachs is not moving to Oslo.
(RTTNews) – Wednesday, Norway’s central bank unexpectedly raised its key interest rate for the second straight rate-setting session.
Norges Bank’s Executive Board decided to increase the key policy rate by 0.25 percentage point to 1.75%. Economists had expected no change in the key rate. In October, the Norges Bank became the first European central bank to initiate rate hike after the global economic crisis rattled the world.
“Activity in the Norwegian economy has picked up,” the central bank said in a statement. It noted that growth in private consumption is strong and house prices are rising sharply. The unemployment level remains relatively low.
This article was posted: Wednesday, December 16, 2009 at 10:05 am