DnB NOR raises interest rates



The price of banks’ funding has increased since the turn of the year. DnB NOR will thus raise interest rates on loans and deposits by up to 0.25 percentage points.The best interest rate on home loans will accordingly be 3.10 percent. The new interest rates will enter into force on March 10 for existing loans and deposits.

Over the past few weeks, there has been a marked rise in banks’ funding costs, which are now at a higher level than before Christmas. For example, the money market rate (3-month NIBOR), which has a significant influence on banks’ funding costs, has increased by 0.25 percentage points since the last interest rate meeting in Norges Bank.

Best bank in 2009

Last week, DnB NOR was named best Norwegian bank in the category for home loans over NOK 2 million, being the only Norwegian bank offering an interest rate below 4 percent on such loans throughout 2009.

Source: DnB NOR

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