– We have chosen to keep the key policy rate unchanged at this meeting, Governor Svein Gjedrem said.

He said developments in the Norwegian economy have been broadly in line with projections. The recovery in Norway and abroad has taken hold, and Norges Bank has raised the key rate in two increments to 1.75 per cent. The Executive Board’s strategy is that the key rate should be in the interval 1¼ - 2¼ per cent until the publication of the next report in March.  

- Inflation is now slightly below 2.5 per cent. Activity is rising, but there are still available resources in the Norwegian economy. House price inflation is high and household demand is increasing. Exports appear to be picking up somewhat faster than expected. On the other hand, petroleum investment may be lower than projected.

– Unemployment is relatively low, but both employment and the labour force have decreased somewhat further than anticipated, Governor Svein Gjedrem said.

(NRK/Press release)

Rolleiv Solholm