Norges Bank

December 5, 2013

According to the central bank Deputy Governor Jan F. Qvigstad,

Consumer price inflation has been somewhat lower than expected in the past two months and it appears that growth in the Norwegian economy will be somewhat lower in the period ahead than projected earlier. On the other hand, the krone has depreciated considerably. On the basis of an overall assessment, the key policy rate was left unchanged at this meeting.  The increase in the key policy rate is now forecast to occur one year later than projected in September.

The overnight deposit rate thus remains at 1.5%, its level since a 25-basis point cut in March 2012.  The rate was also cut 50 basis points in December 2011, raised four times by 25 bps each between October 2009 and May 2011, and slashed in 7 steps between October 2008 and June 2009 by 450 bps to a Great Recession low of 1.25%.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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