• Norway's news in English
 
app_header_v3

Krone falls most in a year on bank surprise

The Local · 20 Jun 2014, 09:30

Published: 20 Jun 2014 09:30 GMT+02:00

The drop, the biggest since June 20 last year, came as Norges Bank unexpectedly ruled out an increase in interest rates until the end of next year, confounding expectations of gradual monetary tightening. 
 
Øystein Olsen, the bank's governor told the Wall Street Journal that the bank had anticipated a strong reaction from the market. 
 
"We expected the krone to weaken immediately after we had published our rate path," he said in an interview. "We thought, with good reason I think, that we surprised slightly on the downside compared with market expectations."
 
He told Reuters that in place of the expected interest rate rise there was “at least a 25 per cent chance” that rates would be further reduced if there were any negative surprises for the economy. 
 
The bank's decision followed a survey issued last week by Norway’s statistics agency which showed that oil companies would cut their investments in the country by 21 percent next year. 
Story continues below…
 
The bank had previously expected a 10 percent drop. 
 

Your comments about this article

Today's headlines
Norway's 'effective' border checks extended
All arriving ferry passengers will still be subject to checks. Photo: NTB Scanpix

Norway's 'effective' border checks extended
1 day ago

The Norwegian government said on Friday it would extend border checks for an additional 30 days.

Every tenth 12-year-old boy in Norway drinks
Photo: Vegard Grøtt / NTB scanpix

Every tenth 12-year-old boy in Norway drinks
1 day ago

Three percent of boys also say they've been drunk in the past month.

Norway Child Welfare Service faces growing global protests
The Facebook group 'Norway, Give Us Back the Children You Stole' says more than 60,000 people have protested against Barnevernet in cities around the world, including Prague shown here. Photo: Norway,

Norway Child Welfare Service faces growing global protests
1 day ago

Norwegian embassies around the world have seen demonstrations over what critics say is an over-aggresive child welfare agency.

US rockers to hit Oslo on first tour since Paris attacks
Eagles of Death Metal at a 2007 performance at Øyafestivalen. Photo: Stian Lysberg Solum / SCANPIX

US rockers to hit Oslo on first tour since Paris attacks
2 days ago

The Eagles of Death Metal will play the Norwegian capital this weekend as they return to the road following the Paris attacks.

Norway issues new Zika advice for pregnant women
File photo. Flickr: coniferconifer

Norway issues new Zika advice for pregnant women
2 days ago

Health officials have new recommendations for minimizing the risk of contracting the Zika virus through sexual conduct.

Extreme Islamism and far-right pose threats to Norway
Justice Minister Anders Anundsen and PST head Benedicte Bjørnland presented the nation's terror assessment in Oslo. Photo: Terje Bendiksby / NTB scanpix

Extreme Islamism and far-right pose threats to Norway
3 days ago

Although Norway's overall terror threat is slightly decreased there are still several factors that threaten the nation.

Chinese fund offers $1.2b for Norway's Opera web company
Photo: Opera

Chinese fund offers $1.2b for Norway's Opera web company
3 days ago

UPDATED: The world's fifth most used web browser may soon be in Chinese hands.

Russian spying can 'damage' Norway: PST
Russian President Vladimir Putin. Photo: Scanpix

Russian spying can 'damage' Norway: PST
3 days ago

In its annual threat assessment, PST said that Russian spies have major “damage potential” for Norwegian interests.

After 36 years, 'mystery films' shown in Norway
The American sent himself the package in 1980 but never picked it up. Photo: Kjell-Erik Ruud/Instagram

After 36 years, 'mystery films' shown in Norway
3 days ago

As proof that sometimes mysteries are better left unsolved, Tuesday’s public viewing of three film reels left unclaimed in a Norwegian hotel for 36 years was somewhat anticlimactic.

How to vote as an American expat in Norway
Even if you won't be anywhere near this ballot box in Dixville Notch, New Hampshire – or anywhere else in the US – you can still take help decide the next US president. Photo: Mike Segar/Scanpix

How to vote as an American expat in Norway
February 09, 2016

As The US presidential voting season is well underway with the first primary elections in New Hampshire, The Local looks at how American citizens can cast their ballots from outside the US.

Sponsored Article
US taxes and FATCA: 'The time for hiding is over'
National
Norway police to go back to being unarmed
Health
Norway ads use Hitler teddy bear to scare parents... about dust
National
Migrants: Norway 'sending us to death' in Russia
Norway under fire over tough new asylum plans
Health
Norway doctors push plan for 'tobacco-free generation'
National
Norway's call to remove crosses causes backlash
Politics
Norway tightens asylum policy to cut numbers
Society
The end of the expat? European cities fight for innovative 'inpats'
Education
Hiker finds 1,200-yr-old Viking sword in Norway
National
Oslo eyes ban on private cars from city centre in green push
Culture
Family shocked as The Scream appears in a freshly sawn plank
National
AS-IT-HAPPENED: Nobel Peace Prize announcement 2015
National
Norway armed forces to get organic underwear
International
Syrians cross Norway's Arctic border on bicycles
Society
Norwegians reveal the (hilariously inaccurate) origins of the Danish language
National
Norway man built secret child's room in cellar
Education
Norway starts school for Vikings
Sport
Sepp Blatter should win Nobel Peace Prize: Putin
2,220
jobs available