by Daniel J. Graeber
Washington (UPI) Mar 16, 2017
A main oil and gas supplier to the European economy, the central bank in Norway said Thursday it was keeping its policy rate stable as recovery takes hold.
Norge Bank said Thursday it would leave its key rate unchanged at 0.5 percent. In a statement of justification, the bank said inflation would be lower than it expected, which implies the Norwegian economy is becoming isolated. On the positive side, there are prospects inflation will pick up and "the upturn in the real economy appears to have taken hold, and unemployment has declined."
Norway is a main oil and gas producer and one of the central suppliers to the European economy, outside of Russia. Nearly all of the oil and gas produced in Norway is exported.
Lingering strains from last year's market downturn are catching up with Norway and production levels have been on a slow decline over the past few months. Norges Bank found lingering economic strains from energy market factors, though bank Gov. Øystein Olsen said a worst-case scenario never materialized for Norway.
"Monetary policy is expansionary and supportive of structural adjustments in the Norwegian economy," Olsen said in a statement. "The executive board's current assessment of the outlook suggests that the key policy rate will most likely remain at today's level in the period ahead."
For Norwegian oil and gas production, the central bank governor said the peak was passed more than a decade ago, though he noted the sector as a whole may have been underestimated. Nevertheless, the governor said in February the Norwegian economy needed "more legs to stand on."
Norway's decision followed a step by the U.S. Federal Reserve to raise its short-term rate by a quarter of a percentage point to between 0.75 and 1 percent. Citing steady gains in the labor sector, one of the bright spots for the U.S. economy, Federal Reserve Chair Janet Yellen said during a Wednesday news conference the U.S. economy "is doing well."
Detroit MI (UPI) Mar 15, 2017
As President Trump heads to Michigan on Wednesday to roll out relaxed vehicle emissions and fuel standards, debates began early over the potential results. The president scheduled a trip to Michigan to meet with auto executives to discuss what White House spokesman Sean Spicer said would be a roll back of regulations that would "lead to more American jobs and higher wages, specifically ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|