Norges Bank keeps key rate unchanged

Norges Bank mortgage policy rateNorges Bank (Bank of Norway), Headquarters Photo: Norges Bank

As expected, Norges Bank key rate remained unchanged at 0.5 percent when the Executive Board’s decision was announced on Thursday.

– Overall developments have not differed materially since September from projections in the Monetary Policy Report.

This implies that the policy rate is being kept unchanged at this meeting, says Governor Øystein Olsen.

The key rate has stood unchanged at a record low 0.5 percent since March 17.
Earlier this year there were clear expectations about new cuts during the year, but this is now less likely.

The reason is that the arrows are again pointing upwards for the Norwegian economy. Growth forecasts have been revised upwards, and the fall in oil investment has flattened out somewhat.

The analysts still think the key interest rate will remain low for a long time.

In addition, internationally there are historically low policy rates.
In Sweden, the Riksbank on Thursday chose to keep its key rate unchanged at -0.5 percent.

Furthermore, the Central Bank announced that an interest rate increase would only be expected in early 2018.


Source: NTB scanpix / Norway Today