The Executive Board of the Norwegian Central Bank (Norges Bank) has decided today to keep the key policy rate unchanged at 2.25 per cent, despite earlier indications of an increase.
“The decision must especially be seen against the background of the recent flare-up in financial market turbulence and clear signs of weaker growth internationally,” says Norges Bank Governor Øystein Olsen.
The analyses presented by Norges Bank in June suggested a gradual increase in the key policy rate through the latter half of the year.
The bank pointed out that the Norwegian economy is still growing at a robust pace and domestic developments have been broadly in line with that projected. This suggested that the key policy rate should be raised further.
On the other hand, inflation is low.
Growth among trading partners appears to be weaker than expected, the banks says. Combined with the turbulence in financial markets, this also has an impact on the outlook for the Norwegian economy.
“An overall assessment of the outlook and the balance of risk suggests that the key policy rate be left unchanged at this meeting,” says Governor Øystein Olsen.
(NRK/Press release)
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