Europe

Chief economist critical of Bank of Norway’s expected rate hike

Photo: Terje Pedersen / NTB

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Jan Ludvig Andreasen, chief economist at Eika Group, believes the rate hike expected by the Bank of Norway on Thursday is unnecessary.

On Thursday there will be a new interest rate meeting at the Bank of Norway. It had previously been announced that interest rates would be raised by 0.25%, but several bank chief economists recently said he believes interest rate hikes could be as high as 2x. says.

The rate hike is an attempt to ease inflation, which has risen sharply in recent months.

Eika Group chief economist Jan Ludvig Andreassen told Dagbladet’s Børsen that he didn’t think further rate hikes were necessary at the moment.

He points, among other things, to the lack of growth in the Norwegian economy.

“I don’t think the market and politicians are fully aware of how painful and unnecessary these price increases are,” he said.

“Whether it goes up 0.25% or not, there will be a crash in the fall. The use of petrodollars will skyrocket,” Andreasen said.

He proposes raising the inflation target to 3% from the current 2%.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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