Norway’s central bank has nearly run out of monetary policy space to stimulate the economy, its governor Øystein Olsen said in a speech on February 18.

Olsen warned Norway is increasingly resorting to the Government Pension Fund Global (GPFG) to finance a larger share of public spending. He cautioned that the returns fuelling the fund’s assets are largely dependent on international equity, exposing the country to volatility in these markets.

In his annual address to Norges Bank’s supervisory