Stats agency chief named Norway's c.bank governor

Published 10/22/2010, 05:25 AM
Updated 10/22/2010, 05:32 AM

OSLO, Oct 22 (Reuters) - The Norwegian government on Friday named Oeystein Olsen, head of Norway's statistics agency, as the next central bank governor with authority over monetary policy and the world's second-largest sovereign wealth fund.

Olsen, appointed to a six-year term, will replace Svein Gjedrem, whose second and last term as Norges Bank governor runs out at the end of 2010. Olsen had been the favourite to get the job.

Under Olsen's leadership, Statistics Norway has forecast slower economic growth and lower interest rates for next year than Norges Bank under Gjedrem.

"Our view and our analysis point to a lower interest rate than Norges Bank sees, based on our view that growth internationally will remain lower than consensus," Olsen, 58, told Reuters last month, projecting a key policy rate "at the present level until summer of next year."

Gjedrem's projections see a rate hike around the turn of the year. Norway's main rate is now at 2 percent, twice that of the euro zone, as economic prospects are brighter in part due to a resiliant offshore oil and gas sector.

(Reporting by Oslo newsroom)

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