Norway: Norges Bank stays put in October
October 31, 2012
At its 31 October monetary policy meeting, Norges Bank (NB) decided to maintain the sight deposit rate unchanged at 1.50%, in a move widely expected by most market analysts. The decision represents the fourth consecutive meeting in which the Central Bank decided to stay put. Norges Bank stated that the key policy rate is being kept at a low level because inflation is low and global interest rates are at very low levels. In addition, growth in the country's main trading partners remains subdued and the krone has strengthened. On the domestic front, the Norwegian economy is solid and inflation will gradually pick up. According to Governor Oystein Olsen, the sight deposit rate will remain at the current level into next year, followed by a gradual increase towards a more normal level. The next monetary policy meeting is scheduled for 19 December.