The Trader 

Do central bankers hunt as a pack?

The Trader

Last week Bloomberg TV interviewed Norway’s central bank governor, Oystein Olsen. Head of the Norges Bank since 2011, this softly spoken civil servant packs quite a punch, responsible for financial and price stability and managing the Government Pension Fund of Norway – the world’s biggest sovereign wealth fund. Timed to coincide with the bank’s decision to raise their key interest rate by 25 basis point to 1.5 per cent, the fourth increase in a year and its highest in five years, he’ll also look into why his currency’s so weak – after we’d warned on Scandinavia a million moons ago. Tellingly he said: "I think all central banks…realise the negative effects of negative interest rates and unconventional measures." Note to self: Norwegian sovereign debt of all maturities out to 10 years yield less than 1.5 per cent today.

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