At its 14 March monetary policy meeting, the Norges Bank (NB) decided to lower the sight deposit rate by 25 basis points to 1.50%, which means it now sits at its lowest level since December 2009. The decision came as a surprise, as most analysts had expected the NB to stay put after the 50 basis points reduction agreed at the previous meeting on 14 December. The Bank's decision was prompted by a combination of the continuing economic downturn abroad and the strong Norwegian krone, which is keeping inflation in check while weighing on economic growth. The Central Bank reckons that the situation in the financial markets has clearly improved since the last monetary policy meeting, although there is still considerable uncertainty about economic developments in the Eurozone. Owing to the weak economic outlook among Norway's main trading partners, central banks are keeping interest rates very low, which is strengthening the krone and thereby dampening economic growth. On the domestic front, the Bank emphasized that growth in petroleum investment and the oil sector is supporting economic activity, while inflation remains well below its target of 2.5%. The next monetary policy meeting is scheduled for 10 May.
Norway Monetary Policy
Norges Bank cuts key policy rate to 1.50%
March 14, 2012
Looking for forecasts related to Monetary Policy in Norway? Download a sample report now.
Norway Economic News
October 10, 2016
In September, consumer prices climbed 0.3% from the previous month, which contrasted August’s reading (-0.5% month-on-month) but undershot market expectations of a 0.7% increase.
October 7, 2016
In August, industrial production decreased 4.7% over the previous month in seasonally-adjusted terms, which contrasted the 4.7% expansion recorded in July and marked the lowest reading since April 2015.
September 22, 2016
At its 21 September policy meeting, Norges Bank (NB) decided to leave its key policy rate at the all-time low of 0.50%, as was expected by market participants. Norges Bank noted that global growth was moderate and that in the medium term import demand from its main trading partners will be lower than previously expected.
September 9, 2016
In August, consumer prices dropped 0.5% over the previous month, which contrasted July’s reading (+0.6% month-on-month) and undershot market expectations of a 0.4% drop.
September 7, 2016
In July, industrial production expanded 5.5% over the previous month in seasonally-adjusted terms, which marked a rebound from the 4.7% fall recorded in June and represented the highest reading since October 2012.