Bank of Norway
June 22, 2017
The Executive Board at Norges Bank left the key Norwegian policy rate at 0.50% and released a statement that indicates the rate is unlikely to be raised until 2019 and then at only a gradual pace. Inflation has been lower than assumed previously despite higher-than-projected capacity usage. Inflation expectations are firmly anchored. Norway’s central bank was the first one in Europe to raise its interest rate after the Great Recession, doing so in October 2009. Other hikes followed in December 2009, May 2010 and May 2011, but the last five moves have been reductions totaling 150 basis points. The rate has been at 0.50% since March 2016.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Norway
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