Historically, Norges Bank's discount rate was the interest rate charged to banks for rediscounting bills of exchange in the central bank, and changes in the discount rate had an impact on the general level of interest rates in Norway.
As a result of developments in the credit market, the discount rate has gradually lost its role as key rate. Earlier this year, the facility for the central bank's liquidity loans to commercial and savings banks was changed. The discount rate thereafter ceased to be a monetary policy instrument.
The Executive Board has therefore decided that Norges Bank shall no longer set a discount rate, with effect from 1 January 1987.