Norway Unemployment Rate at 2.0%; Norges Bank and Danske Bank Influence Krone Valuation
What happened
Norway's seasonally adjusted registered unemployment rate was 2.0% in October, which was below Norges Bank's forecast of 2.1%. The Norwegian Labour and Welfare Administration recorded 61,854 people as fully unemployed in October. Norges Bank raised its policy rate to 4.50% from 4.25% in September. Danske Bank Markets expects the rate to remain at 4.50% at the upcoming November 5 meeting.
From econotimes.com
Why it matters
The unemployment rate and monetary policy decisions by Norges Bank and Danske Bank influence the krone's valuation. Furthermore, krone strength has been linked to higher market pricing of energy-related risks and restricted gas availability in Europe.
From econotimes.com
Who's involved
- Norges BankCentral bank of Norway that raised its policy rate and monitors unemployment figures
- Danske BankBank that expects Norges Bank's policy rate to remain unchanged at the next meeting
- Norwegian Labour and Welfare AdministrationGovernment agency that provides Norway's official unemployment statistics
- NorwayCountry whose economic data and monetary policy are being monitored
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- CitigroupSpeculative
Investment banks might adjust their analyst ratings based on the new unemployment figures and rate expectations
- Morgan StanleySpeculative
Investment banks might adjust their analyst ratings based on the new unemployment figures and rate expectations
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The entities involved
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Norges Bank
central bank of Norway
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Danske Bank
bank headquartered in Denmark
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Norwegian Labour and Welfare Administration
Public welfare agency of Norway
Nothing else this week.