Money in Norway
Norway - Money
Norges Bank keeps rates unchanged in January
The Executive Board of Norges Bank unanimously decided to keep the sight deposit rate at 1.50% at its monetary policy meeting on 23 January. The decision met market expectations after the Bank previously stated the policy rate “will most likely remain at this level in the coming period”.
January’s decision came against a backdrop of inflationary pressures that were broadly in line with the Bank’s previous projections: Inflation eased to 1.4% in December from 1.6% in November, mainly weighed on by a fall in electricity prices. Consequently, inflation remained below the Central Bank’s 2.0% target rate, and the Bank expects inflation to stay below target in the short-term—citing unexpected strength in the krone in recent weeks, which will likely keep inflationary pressures modest. Meanwhile, the domestic economy eased somewhat in November according to monthly economic activity data, but continued to perform well as a tight labor market and a solid housing market kept economic conditions robust. In addition, household debt growth continued to evolve as the Bank had previously expected, allowing the Bank to stay put in January. On the external front, uncertainty around global headwinds have receded as of late, following the partial trade truce between the U.S. and China, and a clearer outcome for Brexit.
The Bank’s stance was virtually unchanged in January, noting “capacity utilisation in the Norwegian economy appears to be somewhat above a normal level, but new information supports the view that the economy is probably near a cyclical peak.” Looking ahead, the Bank will likely keep rates unchanged, barring a significant deterioration in global economic conditions.
The next monetary policy decision will be taken on 19 March.
FocusEconomics Consensus Forecast panelists see the sight deposit rate ending 2020 at 1.56%. Meanwhile, the panel projects the sight deposit rate to end 2021 at 1.64%.
Norway - Money Data
|Money (annual variation in %)||6.4||0.6||5.1||6.0||5.2|
5 years of economic forecasts for more than 30 economic indicators.
Norway Money Chart
Source: Norway Central Bank and FocusEconomics calculations.
|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
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February 10, 2020
Consumer prices were flat in January, following up December’s 0.3% fall.
February 7, 2020
Industrial production increased a seasonally-adjusted 1.5% in December from the previous month, which was weaker than November’s downwardly revised 2.6% rise (previously reported: +3.7% month-on-month). December’s increase was driven by a healthy expansion in the extraction and related services sector, which accounts for around 65% of industrial production in Norway, mainly due to state-owned Equinor’s Johan Sverdrup offshore oil and gas facility ramping up production.
February 7, 2020
The total economy grew 1.6% in the fourth quarter of 2019 in quarter-on-quarter seasonally-adjusted terms, after flatlining in Q3—marking the fastest acceleration since Q4 2016.
January 23, 2020
The Executive Board of Norges Bank unanimously decided to keep the sight deposit rate at 1.50% at its monetary policy meeting on 23 January.
January 10, 2020
Consumer prices decreased 0.3% in December, contrasting November’s 0.3% rise.