Norges Bank

Press release

Excessive weakening of the krone. Norges Bank resumes foreign exchange trading as part of its monetary policy.

The recent weakening of the krone exchange rate is largely a result of international conditions. The Norwegian economic situation has not undergone substantial changes that justify such a weakening.

Monetary policy, which has resulted in a significant widening of the interest rate differential between the Norwegian krone and European currencies, is oriented towards returning the krone exchange rate over time to its initial range.

This interest rate level, combined with a tight fiscal policy, will also contribute to limiting inflation expectations. Against this background, Norges Bank will resume foreign exchange trading as part of its implementation of monetary policy.

Contact:

Press telephone: +47 21 49 09 30
Email: presse@norges-bank.no

Published 16 October 1998 00:00