At its 20 June monetary policy meeting, Norges Bank (NB) decided to maintain the sight deposit rate unchanged at 1.50%, in a move expected by market analysts. The decision represents the eight consecutive meeting in which the Central Bank decides to keep the key policy rate unchanged. The Bank acknowledged that growth among Norway's main trading partners came in lower than expected, as the downturn in the Eurozone is likely to persist longer than previously projected while prospects for the United States deteriorated amid tax increases and expenditure cuts. In Norway, economic activity weakened slightly, while the krone depreciated in recent months. According to Central Bank Governor Oystein Olsen, the first increase in the key policy rate is projected to take place in the year ahead, "unless the Norwegian economy was exposed to new major shocks". Furthermore, Olsen affirmed that "given the vulnerabilities in the Norwegian economy and solid earnings in the financial sector, banks should now build a countercyclical capital buffer". Regarding price developments, the Bank stated that inflation has been slightly higher than anticipated in the March report. The next monetary policy meeting is scheduled for 19 September.
Norway Monetary Policy
Norges Bank stays put in June
June 20, 2013
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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.