Norway cracks down on secret bids in housing market, economists rule out June rate cut, and other news from the country on Monday.
Norway to ban secret bids in housing market bidding rounds
Starting July 1st, secret bids in Norway’s home bidding system will be banned, following recent amendments to the Real Estate Act adopted by the Norwegian parliament (Storting).
The new legislation, highlighted by the newspaper Nettavisen, aims to bring greater transparency and fairness to bidding rounds – especially in competitive markets like Oslo, where the use of undisclosed offers has been widespread.
“This has been annoying and sometimes problematic for those who have not received their dream home because of secret bids,” Olav Kasland, head of the Norwegian Consumer Council, said.
In addition to the ban on secret offers, the updated law will impose stricter requirements on real estate brokers, reinforcing the government’s commitment to protecting buyers in the housing market.
READ MORE: How Norway wants to make the house bidding process more straightforward
Economists expect no rate cut this week
Norges Bank, the country’s central bank, is not expected to lower interest rates at its upcoming meeting this Thursday, according to a near-unanimous panel of economists surveyed by the business newspaper e24.
Despite hopes from Norwegian households, an interest rate cut before the summer holidays now appears highly unlikely.
Chief Economist Tore Grobæk Vamraak at Sparebanken Norge pointed to persistent inflation, low unemployment, and strong wage growth as reasons for the hold.
Norges Bank’s key policy rate has remained at 4.5 percent since December 2023.
While a June cut seems to be off the table, belief in reductions later in the year is gaining some momentum.
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Coffee prices hit record highs
Coffee has become one of the fastest-rising food prices in Norway, with a bag of morning brew now more expensive than ever.
According to Statistics Norway, the price of coffee has surged significantly in the past year.
Nestlé, which owns the Nescafé brand, supplies about 20 percent of all coffee consumed in Norway – around one million cups daily. Despite rising costs, consumption remains steady.
“In some parts of the world, coffee is becoming inaccessible for some people, but in Norway, habits haven’t changed,” Kim-André Nordby, head of Nestlé Norway, told e24.
He also offered advice for people in Norway concerned about their coffee spending.
“Don’t make more than you need. In Norway, about 30 percent of all coffee ends up down the sink.”
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Man charged with trafficking nearly 150 kilos of drugs in eastern and western Norway
A man in his late 30s is facing serious charges after allegedly possessing and distributing large quantities of drugs across eastern Norway and Bergen.
The accused stored and sold approximately 138 kilograms of hashish, 4 kilograms of methamphetamine, and nearly 4 kilograms of cocaine between December 7th, 2023, and January 20th, 2024, according to an indictment from the Oslo District Court.
Prosecutors also claim he handled at least 6 million kroner in drug proceeds.
On January 22nd last year, he allegedly handed over 5.7 million kroner in cash to another man at the Hotel Continental in Oslo.
The trial begins Tuesday at Oslo District Court, with the remainder of the week allocated for the hearing.