Interest rate in Norway unlikely to increase further

Source: Xinhua| 2019-09-06 01:43:14|Editor: Mu Xuequan
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OSLO, Sept. 5 (Xinhua) -- According to Statistics Norway (SSB), there is little chance for further increase of interest rate in the country, online newspaper E24 reported Thursday.

The U.S.-China trade dispute and the uncertainty surrounding the outcome of Brexit cause the agency to now believe that the world economy is heading into a recession, the report said.

"The arrows still point upwards for the Norwegian economy, but we are facing a change of pace that is likely to occur from next year," said SSB researcher Thomas von Brasch.

Despite the forecast before summer that the interest might increase, the central bank admitted in August that uncertainty has increased due to international situation. More and more economists have believed that the interest rate peak has already been reached, E24 reported.

SSB does not believe that Brexit will affect the Norwegian economy to a large extent. "Its effect will be limited and many agreements have already been signed to secure Norwegian trade with the UK," the bank was quoted as saying.

In case currently weakened Norwegian krone exchange rate strengthens in the future, SSB does not rule out that Norges Bank will cut interest rates.