Norway: Norges Bank keeps sight deposit rate at 1.50%
December 5, 2013
At its 5 December monetary policy meeting, Norges Bank (NB) decided to maintain the sight deposit rate unchanged at 1.50%, a move that market analysts had expected. The decision represented the 11th consecutive meeting in which the Central Bank decided to leave the key policy rate unchanged.
The Bank stated that growth prospects for the Norwegian economy weakened slightly compared to September's report and that the krone depreciated beyond the Bank's expectations. Norges Bank also stated that growth among the country's main trading partners remains sluggish and that global policy rates will remain low for an extended period of time. Regarding price developments, inflation has been lower than previously projected and will remain below projections in the coming months.
According to Central Bank Governor Oystein Olsen, the key policy rate should remain, "at the current level in the period to summer 2015 and be increased gradually thereafter." The next monetary policy meeting is scheduled for 27 March 2014.
FocusEconomics Consensus Forecast panelists expect the sight deposit rate to remain stable through the end of this year, resulting in an average of 1.50%. In 2014, the panel sees the key policy rate rising to 1.72%.