Norway's PM, finance minister & the central bank governor are holding an extraordinary meeting today (Monday)
Its to discuss to ongoing implications of the fall in oil prices for the country's economy
Prime Minister Erna Solberg was interviewed by Bloomberg in Davos on Friday:
- "We still have economic growth in Norway ... When the oil price falls our currency has depreciated, it means that other parts of our economy are picking up but of course it's at a lower level than it has been in the last years."
- Said Norway's oil industry was in a "crisis", the overall economy is not
Norway is spending a record amount of its oil wealth this year to stimulate growth
- Is dipping into its sovereign wealth fund for the first time
- Norges Bank, the central bank, has also said it stands ready to lower interest rates further
"Markets are already priced for further easing" Aurelija Augulyte, a macro strategist at Nordea Markets, said by phone Sunday. "That, with the current fiscal program and additional support from exports may outweigh the negative" aspects of the economy, she said.
