Norway: Norges Bank maintains key rate unchanged at 1.50%
May 8, 2014
At its 8 May 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 highlighted that economic growth among the country's main trading partners is still moderate. Domestically, NB stated that an internal survey showed that Norwegian companies experienced weaker growth compared to their previous assessment in February, while unemployment remained broadly stable. In addition, the Bank acknowledged that the krone has appreciated somewhat since March. Regarding price developments, the Central Bank said that inflation has been in line with the Bank's expectations and that it will likely slow slightly in the months ahead. The next monetary policy meeting is scheduled for 19 June.
FocusEconomics Consensus Forecast panelists expect the sight deposit rate to remain stable through the end of this year, resulting in an average of 1.56%. In 2014, the panel sees the key policy rate rising to 1.95%.