Updated principles for calculating and publishing Nowa
Norges Bank has updated the principles for calculating and publishing Nowa with a specification on the use of the contingency method over time.
The update entails incorporating the content of the press release of 26 March 2020 into the principles. The press release specified that Nowa will be set equal to the policy rate if there are too few transactions for calculating Nowa in the ordinary manner for more than three successive days.
Nowa is in principle a transaction-based overnight interest rate based on unsecured loans between banks that report daily transaction data to Norges Bank. The principles for calculating and publishing Nowa set minimum requirements for the activity on which calculation of Nowa is to be based.