Wednesday, 2 October 2013

Base Money in Norway Hits Highest Level since January 2012

Base Money in Norway increased sharply in July and again in August according to the latest monetary data released by Statistics Norway. At NOK 121.996 billion, the base is now NOK 35.603 billion, or 41.2%, higher than it was in June and 51.3% higher than the same month last year. This increase is due to a corresponding increase in banks' fixed-rate deposits with Norges Bank (Norway's central bank) during the last two months. Although the level of base money in August was the highest since January 2012, the current base is 27.1% lower than the peak from July 2009. It must also be noted that base money in Norway tends to fluctuate rapidly from month to month.

The year on year (YoY) growth rate of both the M1 and M2 Money Supply picked up speed in August, with the latter expanding at the fastest pace since November 2011. The 5-year annualised growth rates for both remain however near their all-time lows, though especially the M1 growth rate has picked up somewhat in recent months.

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