Norway Budget to trigger faster interest rate rises

Oct. 14 (Bloomberg) — Norway’s plan to spend a record amount of its oil wealth to support the economy even after it emerged from recession will pave the way for bigger central bank interest rate increases starting this month, economists said.

The world’s fifth-largest oil exporter expects to use a record 148.5 billion kroner ($26.4 billion) of its $450 billion oil fund to generate an extra 0.5 percentage point of economic growth next year, the Finance Ministry said yesterday. That’s a 10.9 percent increase in spending from the oil fund on 2009.

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