At its 27 March monetary policy meeting, Norges Bank (NB) decided to leave the sight deposit rate unchanged at 1.50%. The Bank's decision was on par with market expectations. The Central Bank has left the key monetary policy rate unchanged since April 2012. In its statement, the Central Bank pointed out that global economic activity continued to show signs of improvement at the outset of the year. Domestically, NB stated that economic growth performed as it had projected in its December's monetary policy report. Moreover, monetary authorities stressed that growth prospects for the coming months deteriorated due to weaker growth in both petroleum and housing investment. Regarding price developments, the Central Bank said that inflation is likely to increase slightly in the months ahead. Central Bank Governor Oystein Olsen concluded that, “the analyses imply an unchanged key policy rate in the period to summer 2015, followed by a gradual increase. The path for the key policy rate remains approximately unchanged from December.” FocusEconomics Consensus Forecast panelists expect the sight deposit rate to remain stable through the end of this year, resulting in an average of 1.50%. In 2014, the panel sees the key policy rate rising to 1.72%.
Norway Monetary Policy
Norges Bank stays put
March 27, 2014
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Norway Monetary Policy Chart
Note: Sight Deposit Rate in %.
Source: Norway Central Bank.
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.