Norges Bank raises its deposit and lending rates
Norges Bank, the Central Bank of Norway, has raised the interest rate on commercial and savings banks' sight deposits with Norges Bank, the deposit rate, and on central bank overnight loans to these banks by 1 percentage point. With effect from 25 August 1998, the deposit and overnight lending rates are 8.00 and 10.00 per cent respectively.
The existing regulation governing Norges Bank's conduct of monetary policy states: "In the event of significant changes in the exchange rate, monetary policy instruments will be oriented with a view to returning the exchange rate over time to its initial range."
Through these interest rate increases, the instruments have now assumed such an orientation. Accordingly, Norges Bank will not make further changes in its use of instruments for the time being.
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