Norwegian Monetary Policy Unchanged
September 19, 2013
The analyses imply a key policy rate at today’s level in the period to summer 2014, followed by a gradual increase to a more normal level,” says Deputy Governor Jan F. Qvigstad.
This was the ninth straight meeting in which the policy rate was left at 1.5%. The last changes were cuts of 50 basis points in December 2011 and 25 bps in March 2012. A statement from the Norges Bank Executive Board observed conflicting policy guides — a softer krone and higher-than-projected inflation but also lower-than-assumed growth, still benign inflation and an outlook that foresees sub-2.5% inflation over coming years. The recent rise of inflation was concentrated in food and electricity. Second-quarter GDP growth was even weaker than in the first quarter. The next policy announcement will be in early December.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Norway
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