New Discussion Note on rebalancing rules
28 August 2018
In connection with the Norwegian Financial Research Conference, Norges Bank has published a new Discussion Note on rebalancing rules.
Norges Bank has today also published an advice to the Ministry of Finance proposing adjustments to the fund’s rule for rebalancing.
“The equity share in the benchmark index should be adjusted back to the target level more gradually than at present. The width of the no-trade band within which the equity share may move without triggering rebalancing should be narrower than today, and could be set at +/- 2 percentage points”, the Bank writes in its advice.
The advice from the Bank has been submitted upon request from the Ministry of Finance.