Norges Bank

May 7, 2015

The Central Bank of Norway’s executive board retained a 1.25% deposit rate.  1.25% matches the Great Recession low even though a 25-basis point hike in October 2009 constituted Europe’s first post-Great Recession central bank rate hike.  The rate was last reduced in December 2014.  A 25-basis point cut then followed reductions of 25 bps in March 2012 and 50 bps in December 2011. 

A statement from board officials observes lower-than-projected growth in wages and leaves open the option of cutting the interest rate further:  “From the information we have received recently, there are still prospects that the key policy rate will be lowered in June.”  That meeting is scheduled for the 18th of next month.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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