Norges Bank’s Executive Board decided today to reduce the key rate, the sight deposit rate, by 0.50 percentage point with effect from tomorrow, 13 December 2001. The sight deposit rate will then be 6.5 per cent.

Norges Bank has reduced the interest rate on banks’ deposits with Norges Bank, the sight deposit rate, by 0.50 percentage point with effect from Thursday, 13 December. The overnight lending rate has also been reduced by the same amount. The sight deposit rate and overnight lending rate will then be 6.50 per cent and 8.50 per cent respectively.

“There is greater uncertainty, but the stability of the financial system is still satisfactory”, says Central Bank Governor Svein Gjedrem.

The return on the Government Petroleum Fund in the third quarter of 2001 was -5.3 per cent measured in terms of the currency basket corresponding to the composition of the Fund’s benchmark portfolio. This is the weakest quarterly return since management of the Petroleum Fund commenced in 1996. The overall return for the first three quarters of 2001 was -6.9 per cent. Measured in NOK, the return in the third quarter was -6.3 per cent, and for the three quarters combined, -8.5 per cent.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 31 October. Norges Bank's key interest rate, the sight deposit rate, therefore remains at 7.00 per cent.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 31 October. Norges Bank's key interest rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.

In 2002, Norges Bank’s Executive Board will continue its practice of engaging in a broad discussion of monetary policy every six weeks. Any decisions concerning interest rate changes or other important changes in the use of monetary policy instruments will normally be taken at these meetings. The Executive Board’s decisions will be announced the same day at 2 pm.

Turnover in the Norwegian foreign exchange market increased by 45.6% from April 1998 to April 2001. In the same period, the total value of exports and imports expanded by 33%. Turnover in April 2001 amounted to USD 233.2bn. Transactions with foreign sectors accounted for more than 80% of turnover, and forward trading, including currency swaps, accounted for 72.9% of turnover. The US dollar was by far the most widely traded currency, as it was in 1998. The results are presented in a survey of activity in the Norwegian foreign exchange and derivatives market conducted by Norges Bank among 11 banks in April this year as part of a joint international project under the auspices of the Bank for International Settlements (BIS)1.

The tragic events in the US on 11 September will contribute to a further dampening of activity in the American, Asian and European economies. It is too early to predict the long-term effects.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 19 September. Norges Bank's key rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.

In the light of the tragic events that took place in the US on Tuesday 11 September, Norges Bank is monitoring financial markets in consultation with participants in the financial industry.

The five employees at Norges Bank’s New York Office are safe. The office, which was evacuated immediately after the explosions, is located in south Manhattan, between 500 and 1000 metres from the World Trade Center. The Office manages the Government Petroleum Fund’s holdings of US and Canadian government bonds, which are now being managed by the Head Office of Norges Bank in Oslo.

The return on the Government Petroleum Fund in the second quarter of 2001 was 1.1 per cent, measured by the currency basket corresponding to the composition of the Fund’s benchmark portfolio. The upswing in equity markets contributed positively, while a negative return on fixed income investments detracted from the result. The return on the equity portfolio was 3.2 per cent, and on the fixed income portfolio –0.3 per cent.

On 13 August 2001, Norges Bank is introducing two commemorative coins, one in gold and one in silver, to commemorate the 100th anniversary of the Nobel Peace Prize which was first awarded in 1901. The gold coin (917/1000) will be minted in an issue limited to 7 500 coins, and the silver coin (925/1000) will be minted in an issue limited to 50 000 coins.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 8 August. Norges Bank’s key rate, the sight deposit rate, remains at 7.00 per cent.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 8 August. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Norges Bank, Den norske Bank ASA, Gjensidige Nor Sparebank, SpareBank 1 Gruppen AS, Terra-Gruppen AS, Fokus Bank ASA and Nordlandsbanken ASA have today founded a joint limited company for cash handling. The mission of the company is to establish secure, efficient and profitable solutions for cash handling, and realise synergy effects and market opportunities. The company will perform cash handling services for banks in Norway, and execute statutory central bank functions for Norges Bank.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 20 June. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 20 June. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Today, Norges Bank is issuing a new 1000-krone banknote, the final denomination in the new banknote series. The first note in Series VII was the 200-krone note issued in 1994. The 50 and 100-krone notes followed in 1997 and the 500-krone note was issued in 1999.

The number of payment transactions via PC/Internet more than doubled from 1999 to 2000 and the number of online banking contracts rose by about 75 per cent. For the first time, the increased use of Internet banking has led to a reduction in the use of mail giros. The use of payment cards increased by a good 20 per cent from 1999 to 2000, and Norwegians are among the world’s most enthusiastic users of payment cards. Due to frequent use of payment cards and other inexpensive payments services, costs connected with payment transactions have generally remained low.

The return on the Government Petroleum Fund in the first quarter of 2001 was -2.8 per cent in terms of the currency basket that corresponds to the composition of the Fund’s benchmark portfolio. The return on the equity portfolio was -10.2 per cent. The result reflects a sharp decline in equity prices in Europe and the US, while developments in the Japanese equity market were more positive towards the end of the quarter. The return on the fixed income portfolio was 2.1 per cent.

This is Norges Bank's assessment in the report Financial Stability 1/2001. The main element of uncertainty is associated with credit developments ahead and the enterprise and household sectors' debt servicing capacity in the face of a rising debt burden. This will largely depend on macroeconomic developments in Norway in the period ahead.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 16 May. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 16 May. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 4 April. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent. The Government laid down a new regulation on monetary policy on 29 March 2001. According to the regulation, monetary policy shall be oriented towards low and stable inflation, with an inflation target of 2½ per cent.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 4 April. Norges Bank's key rate, the sight deposit rate, remains at 7.00 per cent. The overnight lending rate also remains unchanged.

The Government has today issued a new regulation on monetary policy, with the introduction of an inflation target of 2.5 per cent. Norges Bank issued its opinion on the new mandate and the consequences for the conduct of monetary policy in a submission of 27 March 2001 to the Ministry of Finance. In the submission, Norges Bank states that the communication of Norwegian monetary policy may be facilitated with the Government now quantifying an inflation target, in line with international practice. The submission is published on Norges Bank's website.

In August 2001, Norges Bank will issue a silver coin to commemorate the 100th anniversary of the Nobel Peace Prize. The coin will be produced by Den Kongelige Mynt A/S (the Royal Norwegian Mint) at Kongsberg, which also produces the gold medals that are presented to prize-winners. The obverse features the heraldic lion, modelled by Øyvind Hansen, a former coin engraver at the Royal Mint. The reverse of the coin bears the same motif as the prize-winners' medals - Norwegian sculptor Gustav Vigeland's portrait of Alfred Nobel.

The return on the Government Petroleum Fund in 2000 was 2.5 per cent measured in international currency. A weak trend in international equity markets in the second half of the year pushed results down. The return on the equity portfolio was -5.8 per cent. Bond markets showed a strongly positive trend, and the return on the fixed income portfolio was 8.4 per cent.

In the March 2001 Inflation Report, Norges Bank projects consumer price inflation at 3 per cent in 2001. At the beginning of March, the money market factored in expectations of a decline in short-term rates this year and next. Assuming a decline in interest rates in line with these expecations, price inflation is projected at 2½ per cent in 2002 and 2¼ per cent in 2003. If interest rates instead remain unchanged at the current level ahead, price inflation may be about 2 per cent from the end of 2002. The projections for 2002 and 2003 may be regarded as estimates for underlying price inflation. The projection for 2002 excludes the temporary effects on price inflation of a decrease in indirect taxes from July 2001.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 21 February. Norges Bank's key rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Interest rates were left unchanged at Norges Bank’s Executive Board meeting on 21 February. Norges Bank's key rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Norges Bank’s accounts for 2000 show a profit of NOK 13.7 billion, compared with a deficit of NOK 3.1 billion in 1999. The accounts were approved at a meeting of the Supervisory Council of Norges Bank on Thursday, 15 February 2001.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 10 January. Norges Bank's key rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.

Interest rates were left unchanged at Norges Bank's Executive Board meeting on 10 January. Norges Bank's key rate, the sight deposit rate, therefore remains at 7.00 per cent. The overnight lending rate also remains unchanged.