Norwegian Monetary Policy Remains on Hold
May 8, 2013
There hasn’t been a Norwegian interest rate change in 14 months. The 1.5% policy rate was reaffirmed after the Executive Board of Norges Bank met. Analysts were not looking for a policy change at this time. The rate was cut by 450 bps to 1.25% between October 2008 and mid-2009, raised back to 2.25% in four moves from October 2009 to May 2011, and subsequently cut by 50 bps in December 2011 and 25 bps in March 2012. Today’s released statement observed, “The key policy rate is low because inflation is low and because external interest rates are very low. In March, the key policy rate was projected to remain at around the current level for the next year before being raised gradually towards a more normal level. There is no basis for changing this assessment now."
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Norges Bank
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