Posted By Wanda Rich
Posted on June 14, 2022
OSLO (Reuters) – Norway’s centre-left government has secured backing from the opposition Socialist Left Party for a revised fiscal budget for 2022, the parties said on Tuesday.
The minority government will spend the same amount from the country’s $1.17 trillion sovereign wealth fund, Norwegian public broadcaster NRK reported, which was estimated at 352.2 billion in May.
“The most important thing we can do is not increase the use of oil fund money so as not to put pressure on interest rates,” Eigil Knutsen, one of the negotiators of the deal, who represents the ruling Labour Party, told a news conference.
Norway’s central bank has raised rates once this year by a quarter percentage point and projects seven more hikes by the end of 2023 to help rein in inflation.
(Reporting by Gwladys Fouche, editing by Terje Solsvik)
