Thursday March 26, 12:59 PM
Norges Bank's Gjedrem: May intervene if NOK "out of line"
LONDON, March 26 (Reuters) - Norway's central bank will consider intervening on the Norwegian crown if the currency becomes 'out of line', governor Svein Gjedrem said on Thursday, but he added this was not necessary at present.
Speaking at a London presentation of the Norges Bank's decision to cut interest rates by 50 basis points to 2.0 percent on Wednesday, Gjedrem said the country's capital market was too small to afford a buyback of fixed income assets of the type seen by cental banks in the United Kingdom or the United States to kickstart stalling economies.
Gjedrem also said there was insufficient liquidity in Norway, which is not a member of the European Union, to establish an OIS market is seen in other countries. He said there was not enough overnight market trading to achieve this.
(Reporting by George Matlock; Editing by Victoria Main) Keywords: MARKETS NORWAY GJEDREM
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