BRUSSELS (MNI) – Norway’s banks expect higher demand for corporate
credit and unchanged demand for household credit at the end of this
year, a report from the country’s central bank, the Norges Bank, showed
on Thursday.
“Banks reported approximately unchanged credit standards for
households and enterprises in 2010 Q3,” the report said. “Banks also
expect unchanged credit demand for households and enterprises in 2010
Q4.”
In the period ahead, banks expect unchanged household credit demand
and somewhat higher corporate credit demand.
The Norges Bank is currently on a tightening cycle after the
Norwegian economy weathered the global economic downturn relatively
well.
The key policy rate is currently 2% and has been left on hold for
the last three monetary policy meetings, as the bank’s policy makers try
to balance a strong domestic economy with a more uncertain global
outlook.
It is expected to keep the key policy rate on hold at its next
meeting on October 27, when it will also publish revised estimates for
growth and inflation.
“All in all, [the report] should not affect the Norges Bank
decision on October 27,” economists at SEK in Stockholm said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
