In this situation there is no limit on FX interventions – we can issue all the kroner that market participants are willing to absorb in order to prevent the exchange rate from appreciating. In this situation the restriction is on interest rates where there is an effective lower bound.
So when the pressure is on the krone to appreciate, as was the case in early 2015, the weight on FX interventions is likely to be larger compared to the situation where the tendency is towards depreciation. As an additional measure to further curb capital inflows, we announced on 30 January 2015 that the issuance of government bonds would temporarily be suspended.