Norges Bank’s monetary policy not to be determined by the new Governor – Nordea

The government has just announced that it will appoint Jens Stoltenberg as the new Governor of Norges Bank. Economists at Nordea do not see this appointment having an effect on Norges Bank’s monetary policy due to two key reasons.

Jens Stoltenberg not to make an impact on Norges Bank’s monetary policy

“Monetary policy is decided by Norges Bank’s Monetary Policy and Financial Stability Committee consisting of the Governor and four more members. Norges Bank’s committee is a collegial committee. This means that the committee takes decisions by consensus and that members collectively stand behind the final decision.”

“Monetary policy decisions are based on the recommendation and analyses provided by Norges Bank’s Monetary Policy Department, which is staffed by professional civil servants. The Monetary Policy and Financial Stability Committee usually follow the advice given by the professional staff.”