Norway: Norges Bank stays put in June
June 20, 2012
At its 20 June 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 decision represents the second consecutive meeting in which the Central Bank remains on hold. Norges Bank stated that "the level of uncertainty surrounding developments in Europe is higher than it has been for some time", while growth prospects in Norway's main trading partners are "expected to be even lower than previously projected." On the domestic side, the Norwegian economy remained strong in the first half of the year. According to Governor Oystein Olsen, the sight deposit rate should remain broadly stable until the end of this year. Thereafter, the key policy rate "is projected to rise gradually towards a more normal level." The next monetary policy meeting is scheduled for 29 August.