Economy

Norges Bank holds the policy rate unchanged at 0.75 per cent

Norges Bank has not changed the policy rate of 0.75 per cent.

 The decision on Thursday was in line with the expectations of most economists and experts after Norges Bank downgraded the interest rate somewhat at the last crossroads in September, when the last Monetary Policy Report of the year came.

– In Monetary Policy Report dated 3/18, the Executive Board considered that the economic recovery continues and that the capacity utilization in the Norwegian economy is close to a normal level. Underlying inflation was close to the inflation target of 2 per cent. The key rate was raised from 0.50 to 0.75 per cent in September, and the main board’s assessment was that it would most likely be furthered in the first quarter of 2019, Norges Bank writes briefly for the interest rate decision on Thursday.

It was the first time in seven years that the central bank at the September monetary policy rate raised the key rate, from record low to 0.5 percent to 0.75 percent. In order to gradually reach a steering rate of 2 per cent in three years, there is reason to believe that in the next three years we can get five interest rate increases on a quarter of a quarter.

Economic growth has been slightly lower and price inflation somewhat higher than projected, but the outlook and risk picture did not seem to change significantly since the latest Monetary Policy Report, the central bank writes.

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