Norway: Norges Bank leaves key policy rate unchanged in October
October 23, 2014
At its 23 October monetary policy meeting, Norges Bank (NB) decided to maintain 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 acknowledged that growth among the country’s main trading partners remains moderate and that uncertainty has increased, particularly in the Euro area. In addition, the expected increase in key rates abroad has again been postponed.
Domestically, Governor Oystein Olsen stated that both inflation and economic growth are in line with September’s projections, although, “developments abroad and the fall in oil prices has increased the uncertainty regarding the outlook for the Norwegian economy.” In addition, the Bank noted that the krone has depreciate since September. The next monetary policy meeting is scheduled for 11 December.