Norway’s National Bank keeps as predicted the key interest rate at 0.5 percent

Interest rateNorges Bank. CEO Øystein Olsen. Photo Norges Bank

In line with analysts’ expectations the Executive Board of Norges Bank keeps the key interest rate unchanged at 0.5 percent. The decision was announced Thursday.

The statement from Norges Bank states that there are indications that inflation will be lower than previously expected. Isolated, this implies a lower interest rate for the time to come.

– On the other hand the recovery in the real economy appears to have taken hold, and unemployment has declined. The Inflation expectations seem well founded. With a key rate near the current levels, there are indications that inflation will gradually pick up again, writes the National Bank.

It further pointed out that an even lower key rate could lead to growth in house prices and debt gain even more momentum.

– The Monetary policy is expansionary and supports the restructuring of the Norwegian economy. As we now consider the prospect, the key rate will most likely remain at current levels in the near future, CEO of the Bank, Øystein Olsen, said in a statement.

The key rate has been kept at a record low 0.5 percent for exactly one year.

 

Source: NTB scanpix / Norway Today

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