On the eve of the year, inflation is so high in Norway that experts at DNB, Nordea and Handelsbanken are sure of raising interest rates on December 14th.
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This is what Eiendom Norge warns about.
– Now we have to put some ice in our stomachs and wait for the impact of the jumps in interest rates that have occurred throughout the year, Managing Director Henning Lauridsen of Eiendom Norge tells Nettavisen.
According to him, we cannot let coincidences like the “weather” determine something as important as the level of the interest rate:
-The fact that the price hike for October this year is higher than last year is partly due to the fact that electricity prices this year are higher than last year.
He is very clear about the need to keep the interest rate as it is and warns of the consequences:
-The used housing market looks perfectly fine, but the new housing market is a disaster. Construction of only a third of what was needed has begun.
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Urgent supplication: – Do not touch the interest rate
And that this market is, so to speak, “paralyzed”, we will especially notice on the day when the projects were supposed to be ready:
-We know that it takes about two years to complete a house. The impact of the stagnation we are seeing now will likely be felt in 2025, 2026 and even 2027.
We need 30,000 new homes every year. As it stands, only 11,000 have been built.
Therefore, Lauridsen made an urgent appeal to Norges Bank before the interest rate meeting on 14 December:
– If the interest rate is raised further, this means weaker purchasing power and fewer opportunities to accelerate housing construction.
– Not under control
New figures from Statistics Norway (SSB) show that inflation is not under control. Change is underway 4.0 percent from October last year to October this year.
The underlying price increase rose by six percent from October last year to October this year, three times Norges Bank’s target of 2 percent.
Unfortunately, there’s bad news for all of us before Christmas:
– Regardless of what the November numbers may show, this means we will get a rate hike in December, Nordea’s chief strategist, Dane Sikov, told Netavicin on Friday morning.
He admits that they made a mistake in their estimations. According to Statistics Norway, the increase is 0.6 percent on a monthly basis.
According to DNB Markets, monthly growth of more than 0.2 percent means interest rates will increase from… Bank of Norway.
Norges Bank announced an interest rate hike
Norges Bank attaches great importance to this matter before the last interest rate meeting of the year December 14:
-The numbers we received for September were slightly below our expectations. We will take with us the numbers arriving on Friday and all other new information until our next interest rate meeting, central bank governor Ida Wolden-Basch tells Netafsen here:
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