Norges Bank Boosts Banking System Liquidity to Ease Volatility

Norges Bank will carry out market operations to ease uncertainty in the money markets brought about by large tax payments.

“In the coming weeks, structural liquidity in the banking system will be very low due to large tax payments to the government,” the central bank said in a statement on Monday. “Uncertainty about the size of these tax payments and the level of banking system liquidity has resulted in substantial volatility in short term money market rates.”

Benefiting from high prices brought about by the continent’s energy crisis and Russia’s invasion of Ukraine, oil and gas companies in western Europe’s ...