{"id":2804,"date":"2014-12-11T09:53:47","date_gmt":"2014-12-11T14:53:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2804"},"modified":"2014-12-11T09:53:47","modified_gmt":"2014-12-11T14:53:47","slug":"norway-central-bank-slammed-by-oil-plunge-warns-of-severe-downturn-unexpectedly-cuts-rates-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2804","title":{"rendered":"Norway Central Bank, Slammed By Oil Plunge, Warns Of “Severe Downturn”, Unexpectedly Cuts Rates | Zero Hedge"},"content":{"rendered":"

Norway Central Bank, Slammed By Oil Plunge, Warns Of “Severe Downturn”, Unexpectedly Cuts Rates | Zero Hedge<\/a>.<\/p>\n

The governor of Norway\u2019s central bank says western Europe\u2019s biggest oil producer is facing a major economic slowdown as crude prices continue to plunge.\u00a0As Bloomberg reports,\u00a0<\/a>Oeystein Olsen said today in an interview after a press conference in Oslo,\u00a0“our job now is that we need to prevent a severe downturn in the economy… that is presently the major concern of the board.”<\/strong><\/p>\n

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Olsen cut Norway\u2019s main interest rate today by 0.25 percentage point to 1.25 percent, a move that shocked markets and sent the krone down almost 2 percent against the euro (weakest since July 2009).<\/strong>\u00a0The decision came after almost three years of unchanged rates and marked a shift away from a policy that had sought to prevent excessive monetary easing from fueling house price growth.<\/p>\n

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Even after today\u2019s cut, the bank sees a\u00a0\u201c50-50 chance\u201d for another rate reduction next year,<\/strong>\u00a0Olsen said.<\/p>\n

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Oil prices have plunged 44 percent from a June high, the worst decline since the financial crisis erupted in 2008.\u00a0Norges Bank estimates oil investments will decline by 15 percent next year, with the risk of \u201cspillover\u201d effects on the rest of the economy and rising unemployment.<\/strong><\/p>\n<\/blockquote>\n

And as Nick Cunningham via OilPrice.com<\/em><\/a>, this is why… since\u00a0Norway depends on the oil industry for almost a quarter of its economic output and has built an $860 billion wealth fund from its offshore revenue.<\/strong><\/p>\n

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…click on the above link to read the rest of the article…<\/span><\/p>\n

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Norway Central Bank, Slammed By Oil Plunge, Warns Of “Severe Downturn”, Unexpectedly Cuts Rates | Zero Hedge. The governor of Norway\u2019s central bank says western Europe\u2019s biggest oil producer is facing a major economic slowdown as crude prices continue to plunge.\u00a0As Bloomberg reports,\u00a0Oeystein Olsen said today in an interview after a press conference in Oslo,\u00a0“our […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[122,184,1241,1775],"class_list":["post-2804","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-central-bank","tag-crude-oil","tag-norway","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2804"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2804\/revisions"}],"predecessor-version":[{"id":2805,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2804\/revisions\/2805"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}