Norway skyline at night

Norway Monetary Policy May 2022

Norway: Norges Bank holds fire in May, hints at hike in June

At its 4 May monetary policy meeting, the Executive Board of Norges Bank unanimously voted to keep the sight deposit rate unchanged at 0.75%, where it has been since it was raised in March. The decision met market analysts’ expectations.

The decision to hold was driven by the “substantial uncertainty” surrounding the impact that of the war in Ukraine on the Norwegian economy. The Bank noted that, while there is a risk that inflation could accelerate further, the economic and financial impacts of a rapid increase in interest rates are uncertain.

In terms of forward guidance, Norges Bank hinted—as it had at its March meeting—that the gradual tightening of conditions will resume in June. The Bank affirmed that “if there are prospects of persistently high inflation, the policy rate may be raised more quickly than indicated by the policy rate forecast in the March Report”. The majority of our panelists continue to see the sight deposit rate ending the year at 1.50%.

The next monetary policy rate decision is set to be announced on 23 June.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest