Bank of Norway
May 12, 2016
Norway’s key policy rate had been cut to 0.50% from 0.75% at the prior Executive Board meeting in mid-March, but officials then warned against dangers of ultra-low interest rates and promised to exert caution in considering any further stimulus. Sure enough, the the interest rate was kept at 0.50% at this week’s meeting. And a released statement balances the recent elevation of inflation with the possibility that a recent strengthening krone may cause inflation to recede faster than assumed in the March review. The next policy announcement is scheduled for June 23, coinciding with the British referendum on EU membership. The krone got an added boost today from the Executive Board’s decision.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Norges Bank
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