Norges Bank

Knowledge bank

Key questions and concepts for the economy and the financial system - briefly explained

The policy rate

How does the policy rate influence other interest rates?

Once the Monetary Policy and Financial Stability Committee determines the policy rate, the Committee sets the banks' deposit and lending rates in Norges Bank. This is the first step toward the policy rate influencing other interest rates in the economy.

Inflation and monetary policy

Financial stability

Why are banks so important?

A well-functioning financial system is fundamental to a modern economy, and banks perform important functions for society. They must therefore be secure.

Money and payment system

How are payments made?

There are primarily two types of money in the payment system, notes and coins issued by Norges Bank (cash) and deposits in banks (deposit money).

Are we headed towards a cashless society?

The emergence of new types of payment instruments throughout history has been gradual and payment instruments are constantly evolving. Cash will nevertheless continue to be in use for many years.