– It just gets worse and worse – E24

Although the economy is going well, new home owner Lars Trones hopes that the interest rate will be lowered in the autumn.

On Friday at 10.00, Norges Bank will issue a new interest rate decision.

After all sun signs, the key interest rate will remain at 4.5 per cent.

Repeated interest rate hikes and high inflation bite people’s wallets in various ways.

Out in the maisola on Karl Johan in central Oslo on Thursday afternoon, people treat themselves to something cold to drink in their glasses.

E24 meets Lars Trones, who has sat down to enjoy the temperature, which has risen well above 20 degrees.

He is one of those who notices that the economy has become tighter as a result of a series of interest rate hikes.

– As a young person, I don’t have that much money to mess around with. The money is enough, but it will only get worse and worse, I feel, he says.

– The interest rate is increasing and increasing

Trones works as an electrician and has just bought his first home. He lives alone and says that it was far from easy to get into the housing market.

If the key interest rate is kept steady, it will also mean that most mortgage interest rates will be kept steady throughout the autumn.

– Every quarter I get a new letter in the post. It is always that the interest rate increases and increases all the time, says Trones.

Trones therefore tries to cut back on certain things in everyday life, such as energy drinks, in order to save money.

– I think a bit about what I spend money on, and make sure I don’t buy more than I have to.

The economy is going well

The question is whether there will be any interest rate cuts at all in 2024. Economists have highlighted several reasons why an interest rate cut could take until next year.

New home owner Lars Trones is naturally hoping for an interest rate cut in the autumn, so that he will have more money to spend.

Nevertheless, he thinks that his own finances are going relatively well.

– Now I have a full-time job, so it’s not so bad for me. I think more about the students, actually. If you are, it is not so easy.

– Will there be a holiday abroad this year or is there no room for it?

– Yes, it will be fast. It’s not that little money. I save money where I can, and spend money where I can, says Trones.

Interest rate cuts may be delayed

DNB Markets believes in its latest analysis that the first interest rate cut can wait until December. The background is the strong growth picture in the Norwegian economy, as well as the weak krone.

The krone exchange rate has recently been at its weakest against both the euro and the dollar since the New Year. Several experts are struggling to understand why the krone is weakening.

Nordea Markets believes that the krone is one reason why another interest rate hike cannot be ruled out. In its latest report, the brokerage writes that it expects no interest rate cuts this year, and at the same time only two cuts in 2025.

Kjetil Olsen, chief economist at Nordea Markets, has stated to E24 that he believes the current interest rate level may be the new normal.

At the same time, Olsen asks whether we really need an interest rate cut as it stands now. In addition to the weakening of the krone, the labor market is strong and price inflation remains high.

At the same time, there are indications that an interest rate cut in the US may also be delayed. What is done with interest rates in important economies such as the US and the eurozone also affects interest rate setting here at home.

– There is no clamoring for rapid interest rate cuts here, says Olsen at Nordea.