Norway Monetary Policy


Norway: Norges Bank maintains key policy rate at September's meeting

September 18, 2014

At its 18 September monetary policy meeting, Norges Bank (NB) decided to keep 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 economic recovery continues among the country’s main trading partners, although growth prospects are weaker than previously expected. The Bank also stated that, globally, policy rates remain extremely low and that this environment will continue going forward.

Regarding price developments, the Central Bank said that inflation has been higher than expected and that underlying inflation should continue running at between 2.0% and 2.5%.

Against this backdrop, Governor Oystein Olsen stated that, “the outlook for inflation and output is little changed since June. The key policy rate has therefore been left unchanged.” In addition, Olsen said that, “the key policy rate will remain at the present level to the end of 2015, rising gradually thereafter.” The next monetary policy meeting is scheduled for 23 October.

The majority of FocusEconomics Consensus Forecast panelists expect the sight deposit rate to remain stable through the end of this year, resulting in an average forecast of 1.50%. In 2015, the panel sees the key policy rate rising to 1.63%.

Author: Ricard Torné, Lead Economist

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Norway Monetary Policy Chart

Norway Monetary Policy September 2014

Note: Sight deposit rate in %.
Source: Norges Bank (NB).

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