Norway Europe's first to up rates

IveSeenTheLight

from http://news.bbc.co.uk/2/hi/business/8330110.stm

Norway Europe's first to up rates


Inflation in Norway means rates are likely to rise again

Norway has become the first European country to raise its interest rates since the beginning of the global financial crisis. The country's central bank raised the cost of borrowing to 1.5% from 1.25% in a widely-expected move.
It said the increase was needed because inflation was higher than expected and unemployment was "considerably lower than previously projected".
Earlier this month, Australia raised its interest rate to 3.25% from 3%.
The move made Australia the first country in the G20 to increase rates since the global economic crisis.
Norwegian central bank governor Svein Gjedrem said: "Activity in the Norwegian economy has picked up more rapidly than expected. Developments indicate that it is appropriate to raise the key policy rate now."
He added that rates would continue to rise "gradually".
Countries across the world have lowered interest rates over the past year to cut the cost of borrowing in at attempt to stimulate economic growth.

mewbie_2

Ok, hands up, it's Norway. But the point is, rates aren't going to stay low for ever. They can't. And yet. We haven't really recovered yet. Ooops.

Expect more bull, more fluff from VI's as the sitaution gets more frantic. Can the economies recover before rates have to rise? What happens if they don't?

http://news.bbc.co.uk/1/hi/business/8330110.stm

ruggedtoast

If rates go up elsewhere dont they have to go up here? The carry trade or something...

mewbie_2

ruggedtoast wrote: »

If rates go up elsewhere dont they have to go up here? The carry trade or something...

Ssshhh. You'll frighten the children.

IveSeenTheLight

Thread already started

http://forums.moneysavingexpert.com/showthread.html?t=2040913

Cleaver

mewbie wrote: »

Ok, hands up, it's Norway.

A-ha.

......

ruggedtoast

Im quite happy with Mewbie's thread - you go back to your own one.

Cleaver

ruggedtoast wrote: »

Im quite happy with Mewbie's thread - you go back to your own one.

ISTL's thread does come with a picture of Norway though. Having said that, it could have been of anywhere. Mewbs, can you come up with a better Norwegianey picture? Like this one:

ruggedtoast

Cleaver wrote: »

ISTL's thread does come with a picture of Norway though. Having said that, it could have been of anywhere. Mewbs, can you come up with a better Norwegianey picture? Like this one:

I always wondered what the drive was for Scandinavian death metal. A backlash against the oppression of an all encompassing welfare state, almost universal affluence, low crime and trains that run on time, but no - apparently its goblins.

They think goblins live in the forest and want them to burn churches.

mewbie_2

IveSeenTheLight wrote: »

Thread already started

http://forums.moneysavingexpert.com/showthread.html?t=2040913

Sorry ISTL - didn't notice it.

Cleaver

ruggedtoast wrote: »

I always wondered what the drive was for Scandinavian death metal. A backlash against the oppression of an all encompassing welfare state, almost universal affluence, low crime and trains that run on time, but no - apparently its goblins.

They think goblins live in the forest and want them to burn churches.

Have you read this book? A bit tabloid but quite interesting and gives some background to the mentality. I think a lot of it was misguided backlash against some of things you mention above.