Published: 05/03/2024 16:50
Photo by Victorios Klesty (Reuters/Scanpix).
Norway’s central bank left the base interest rate unchanged at 4.5% on Friday, without mentioning any plans to reduce it in the near future.
Such a decision, adopted at the third meeting of the Monetary Policy Council in a row, met market expectations, according to “Trading Economics”.
The regulator noted that current monetary policy is sufficiently restrictive to allow the economy to grow and inflation to return to the target range within a “reasonable time frame”.
The bank also pointed out that inflation had slowed more than expected since its previous meeting in March, but growth in economic activity also beat expectations, allowing tighter monetary policy to remain in place for longer to avoid too high core inflation fueled by wage growth.
Finally, policymakers have signaled that they are prepared to raise key interest rates further if monetary policy is deemed not to be tight enough to keep inflation on target.
In March, Norway’s central bank hinted that an interest rate cut was possible in the fall.
In March, the annual inflation in the country was 3.9%, and the base annual inflation was 4.5%.
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Theme “Markets”
Tags: Bank Norway change base interest rates mention reducing
