At that time, it predicted that its sight deposit
rate would reach 5.
The rate of interest on F-loans is fixed for the life of the loans, and the loans allotted are credited to the relevant banks' sight deposit
accounts with Norges Bank.
The Norwegian central bank Norges Bank said on Wednesday (28 January) that its executive board had decided to reduce the interest rate on banks' deposits with Norges Bank, the sight deposit
rate, by 0.
In periods of excessive activity in the economy, or expectations of excessive activity, the exchange rate may appreciate, even if the sight deposit
rate does not change.
If the Bank ensures that the banking system has a liquidity surplus during the period, banks' marginal investment will be a sight deposit
in Norges Bank.
Following the drop of short-term interest rates, sight deposit
accounts were nourished from funds flowing out of time deposits; the latter contracted sharply and induced M2 to decrease.
Both the sight deposit
rate and the interest rate on banks' overnight loans were reduced by 0.
Effective from today, the interest rate on banks' deposits with Norges Bank, the sight deposit
rate, becomes 6.
7 billion dinars, mainly from the positive evolution of sight deposits
Interest on sight deposits
at the SNB is to remain at 0.
The third limitation of the current experience is that, partly for the reasons just mentioned plus the prevalent tiering system, negative rates have not been transmitted to retail sight deposits
in any of the five jurisdictions with negative policy rates.
This development reflects a significant rise in sight deposits
among banks and a recovery in April of certificates of deposit and banknotes and coins in circulation.
The largest decline came from KD sight deposits
, down KD 451 million, though savings and foreign currency deposits were also lower.
We consider the following components used in the computation of the Monetary Services Divisia Index: Interest-bearing banks sight deposits
(1977Q1-2011Q1), interest-bearing bank time deposits (1977Q1-2011Q1), interest-bearing sight deposits
at mutuals (1998Q4-2011Q1), interest-bearing sight deposits
at mutuals (1998Q4-2011Q1), and cash individual saving accounts (ISA).
The apex bank has maintained its rate on sight deposits