The main interest rate will now be between 4.5 and 4.75 percent.
The decision was unanimous, according to the central bank. The bank points out, among other things, that conditions are easier on the labor market, and that progress has been made towards the long-term goal of keeping inflation under 2 percent.
The bank plans to make further cuts throughout the year.
President-elect Donald Trump is expected to stand for a policy that will increase the budget deficit in the United States, which could lead to higher interest rates.
Despite the political turmoil this week, the US central bank, the Federal Reserve, is expected to stick to its plan for the economy.
Be a video: Trump declared victory
– We do not think
– In the short term, the election will have no impact on our political decisions, said central bank governor Jerome Powell at a press conference after the interest rate meeting.
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– We do not measure, we do not consider and we do not accept what the political decisions of the authorities will be in the future, he continued.
According to CNN, Trump may allow Powell to continue as head of the central bank until the end of his term in May 2026. He is a high-ranking adviser to the incoming president. will inform the channel about this.
He will not resign
Powell was asked at the press conference if he would resign if Trump, who himself appointed Powell in 2017, would resign if asked.
– No, was the short answer.
Thursday’s interest rate cut follows the first cut in four years in September, when interest rates fell by 0.5 percentage points.
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Since September, inflation in the US has fallen to 2.1 percent, and economic growth has been strong.
So analysts believe that the Americans can expect another interest rate cut in December.
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Good news for the Vikings
Earlier on Thursday, Norges Bank chose to keep the policy rate unchanged at 4.5 percent. Central bank governor Ida Wolden Bache announced at the same time that interest rates may not fall during the year.
For Norway, it is good news that the American central bank is lowering interest rates, says Kyrre M. Knudsen, chief economist at Sparebank 1 Sør-Norge.
– Although Norges Bank indicated today that the interest rate will remain unchanged for the rest of the year, interest rate cuts in the US and other countries are contributing to making it easier for Norges Bank to start with interest rate cuts finally, Knudsen tells NTB.
2024-11-07 21:31:00
#Good #news #Vikings
