Norway: Norges Bank remains on hold in August
August 29, 2012
At its 29 August monetary policy meeting, Norges Bank (NB) decided to keep the sight deposit rate unchanged at 1.50%, which was widely expected by most market analysts. The decision represents the third consecutive meeting in which the Central Bank decided to stay put. Norges Bank stated that "the Norwegian economy is still faring well, but inflation is low. External growth is sluggish and interest rates abroad are very low." In addition, developments among the country's main trading partners have been in line with expectations and the krone has recently appreciated slightly. According to Deputy Governor Jan Fredrik Qvigstad, and in line with June's assessment, the sight deposit rate should remain broadly stable until the end of the year. The next monetary policy meeting is scheduled for 31 October.