The objective of Norges Bank’s liquidity policy is to keep short-term money market rates close to the policy rate. Norges Bank achieves this by managing the total amount of liquidity in the banking system. Large tax payments to the government have led to a low level of structural liquidity in the banking system in the past two weeks. This has resulted in substantial volatility in short term money market rates. The structural liquidity in the banking system is expected to be very low in coming weeks as well.  

Since 3 October, Norges Bank has offered fully allotted F-loans at a fixed rate with one day maturities, see "Large tax payments and F-loans to banks". Norges Bank has decided to extend the offer of daily F-loans until 28 October 2022. The offer will be extended if the situation so warrants. The F-loans are in addition to ordinary market operations in accordance with the structural liquidity forecast. The interest rate on these F-loans is the policy rate plus 10 basis points. The deadline for submitting tenders is 4:10 pm. The F-loans will be announced on the same day as they are settled. Any surplus liquidity resulting from these F-loans will not be withdrawn from the banking system.