Key policy rate unchanged

As predicted by most analysts, the Norwegian Central Bank's Executive Board decided to keep the key policy rate unchanged at 1.5 percent.

"The key policy rate is being kept at a low level because inflation is low and global interest rates are at very low levels," says Governor Øystein Olsen.

Olsen pointed to the following, after Wednesday's meeting:

Growth among Norway's trading partners is weak and the uncertainty surrounding developments in the international economy is elevated. Measures by a number of central banks have, nevertheless, contributed to easing financial market tensions recently.

Growth in the Norwegian economy is solid and capacity utilisation is somewhat higher than normal. The krone has appreciated. Lower premiums in money and bond markets have reduced banks' funding costs. At the same time, interest rates on banks' loans to households and enterprises have remained unchanged.

"Developments in the Norwegian economy give reason to believe that inflation will gradually pick up. The analyses in this Report suggest that the key policy rate should be kept at today's level into next year, followed by a gradual increase towards a more normal level. The forecast for the key policy rate in 2013 is slightly lower than the June forecast," says the Governor.

At the meeting, the Executive Board decided that the key policy rate should be in the interval 1% – 2% until the publication of the next Report on 14 March 2013, unless the Norwegian economy is exposed to new major shocks.

Related news

Latest news

USCG confirms OPtimarin in Line for Ballast Water Approval

The United States Coast Guard (USCG) has confirmed that Norwegian ballast water treatment specialist Optimarin has become the first supplier to submit an application for type approval.

New order for Servogear

Servogear announces that they have received a new order from Brødrene Aa. 

Norwater AS reports boost in sales

The Norwater team reports of great interest and busy days in 2016. In a press release, they state that as of the first 8 months of the year, 2016 sales are already beyond target for the year as a whole.

Gaia-facts reaching ground control

The European Space Agency (ESA) has released the first data from the Gaia mission, which has the tremendous task of building the most precise 3D map of the Milky Way.

Polish delegation for Norwegian circular waste management

Against the background of the EU's ambitious waste management targets, Norwegian and Polish stakeholders met on Wednesday 14 September in Drammen.

Milestone at Mongstad Water Treatment Plant

SAR AS reports that an extensive upgrade to the water treatment plant at Mongstad reached a new milestone July. 

Servogear signs new contract with Özata Shipyard

Servogear has announced the signing of a new contract with Özata Shipyard in Turkey. The contract includes the delivery of Servogear Ecoflow PropulsorTMfor two 39 meter passenger catamarans (YN 41 & YN 42).

Statoil and Petrobras strengthen strategic partnership

Statoil reports that they have strengthened their cooperation in Brazil by signing a Memorandum of Understanding (MoU) with Petrobras.

TechInvent and Island Offshore/Centrica announced winners of ONS Innovation Award

TechInvent and Island Offshore/Centrica were announced winners of the ONS 2016 Innovation Awards, at the Innovation Awards Ceremony Tuesday 30 August.