House price inflation and debt growth have moderated recently, while estimated market prices for commercial real estate have continued to rise rapidly.

"The persistent increase in household debt ratios and high property price inflation in recent years are signs that financial imbalances have built up. On the whole, recent developments suggest that the imbalances have not built up further", says Governor Øystein Olsen.

Looking ahead, weak growth in the Norwegian economy may curb growth in both household and corporate debt. On the other hand, lower interest rates entail a risk of a pickup in property price inflation and debt growth.

The buffer rate is set at 1 percent and will be increased to 1.5 percent from 30 June 2016.
The Ministry of Finance decided today to keep the buffer requirement unchanged. See the Ministry's press release (Norwegian)

Norges Bank's letter: Advice on the countercyclical capital buffer 2016 Q1