Norges Bank keeps key interest rate on hold

The Norwegian central bank, Norges Bank, kept its key interest rate on hold at 0.5 percent today, as expected. Norges Bank gave no new signals during the meeting. The central bank judged developments since the last MPR in September as widely in line with its view. The decision was unanimous.

While the Norwegian krone is on the weak side compared to the Norges Bank’s forecast, housing prices and inflation have been slightly weaker than expected. The central bank’s message was that they have made no considerable change to their view on the Norwegian economy, and therefore neither to their view on the interest rate, noted Nordea Bank in a research report.

“If the current developments continue over the next couple of months we should therefore expect only minor changes to the new rate path published at the December monetary policy meeting,” added Nordea Bank.

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