Inflation Saps SWF Returns
Posted on 01/09/2024
An interview conducted by Reuters revealed that Norway’s US$ 1.5 trillion sovereign wealth fund is taking a hit from inflation. Norges Bank CEO Nicolai Tangen told the media company: “The biggest challenge is to generate return in a world which is becoming difficult.” Tangen expressed doubt that inflation could be kept under wraps, which would have implications for interest rates: “I observe that a lot of investors and economists are very optimistic about the speed of interest rate declines, and I’m not so sure that’s going to happen.”
Keywords: Norway Government Pension Fund Global.
