Norges Bank’s Olsen backs ‘leaning against the wind’

oeystein-olsen-norges
Øystein Olsen

Central banks would be wise to use their main policy rate to lean against the build-up of financial imbalances, Norges Bank governor Øystein Olsen said on April 27.

Norges Bank has at times kept the interest rate "somewhat higher" than the level implied by medium-term inflation and the output gap, Olsen said, to counter the effects of financial imbalances – a policy known as "leaning against the wind".

Olsen warned current understanding of macro-prudential tools is "still limited", while "we do

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.