Norway moves policy tools in opposite directions

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Trondheim, Norway

Norway today (June 18) moved its monetary and macro-prudential policies in opposite directions, cutting interest rates but increasing the countercyclical capital buffer (CCB).

Norges Bank cut its headline interest rate 25 basis points to 1%, and recommended the government raise the CCB from 1% to 1.5%, which it has now done. Banks have until July 2016 to comply with the higher rate.

The economy is being pulled in opposite directions by signs of a macroeconomic slowdown accompanied by financial m

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