At its 10 May monetary policy meeting, Norges Bank (NB) decided to maintain the sight deposit rate unchanged at 1.50%, which was widely expected by most market analysts. The move marked the first halt since December 2011 after the Bank cut rates in the previous two meetings. The Central Bank stated that there are signs that activity in the Norwegian economy is slightly higher than expected, but tensions in international markets have flared up again. Moreover, growth in the petroleum and oil sector remains strong despite oil prices started to fall since March. In addition, the krone weakened somewhat after the 25 basis-point rate cut implemented in March, but has remained fairly stable since then. On the external front, the Bank stressed the renewed turbulence in financial markets observed in recent weeks and sluggish developments in most of Norway's main trading partners. Against this backdrop, the Bank adopted a more hawkish tone, stating that the key policy rate should further out be raised gradually to a more normal level.
Norway Monetary Policy
Norges Bank stays put
May 10, 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.