Norway: Norges Bank stays put in March
March 14, 2013
At its 14 March monetary policy meeting, Norges Bank (NB) decided to keep the sight deposit rate unchanged at 1.50%, as it was expected by most market analysts. The decision represents the sixth consecutive meeting in which the Central Bank decides to stay put.
Norges Bank acknowledged that financial conditions in international markets have continued to improve, but added that economic growth among Norway's main trading partners is expected to be lower than expected. On the domestic front, Norges Bank stressed that the Norwegian economy remains solid, albeit economic growth is falling somewhat below previous projections. In addition, house prices, which had been in the spotlight in recent months, have increased faster than anticipated. Regarding price developments, the Bank stated that inflation remains low.
According to Bank's Governor Oystein Olsen, the first increase in the key policy rate is now projected to take place in spring 2014. The next monetary policy meeting is scheduled for 8 May.