OSLO (Thomson Financial) - Norway's central bank said on Friday said it had injected extra funds into the banking system to ensure sufficient liquidity and that it could not rule out doing it again.
"Yesterday we had a regular F-loan auction (central bank paper loan to commercial banks) and the supply was 45 bln nkr," said Norges Bank chief of monetary policy, Jan Qvigstad.
"This is about 15-25 bln nkr more than normal and was to ensure there is ample liquidity in the system," he told Thomson Financial News.
"We continue to monitor the situation closely and we will if necessary... provide additional liquidity to the banking system," he said.
Qvigstad said his bank had not co-ordinated its actions with the other central banks who had performed similar actions, but that it was aware of the efforts of others.
"This was done in line with the other central banks but we did not take a concerted action," he said.
"This is liquidity policy, not monetary policy. In the present situation we want to make sure there is ample liquidity in the system."
patrick.mcloughlin@thomson.com
pm/slm
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