Head of Norway's national bank, Svein Gjedrem, is criticised after another severe cut in interest rates on Wednesday, 13 August 2003. “Too aggressive”, says Professor Шystein Thшgersen.
Mr. Шystein Thшgersen is Associate Professor at the Norwegian School of Economics and Business Administration and during 1999-2001 was representative to "Norway Bank Watch"; an expert committee appointed to monitor and assess monetary policy in Norway.
After yesterday's cut the interest rates have reached 3 per cent in Norway.
Thшgersen is worried that the curve will be V-shaped over the next months, as the interest rates will probably be lowered further this autumn, before it will be increased again later. Within a year the rate will be back at 4 per cent, Thшgersen predicts.
The national bank's main goal is to reach a level of 2.5 per cent for the base rate within two years.
