Norway’s central bank keeps interest rates low

Jan F. Qvigstad. Photo: Nancy Bundt.

Jan F. Qvigstad. Photo: Nancy Bundt.

Norges Bank’s Executive Board decided today to keep the key policy rate unchanged at 1.25 per cent.

“Inflation is now below the target of 2.5 per cent. The krone has appreciated and will, in conjunction with continued low imported inflation, contribute to keeping inflation below target in the year ahead. There is still a risk of continued low growth in the global economy for a fairly long period ahead. Key rates in many countries are close to zero and global money market rates have fallen. Hence, it is now appropriate to keep the key policy rate unchanged,” says Deputy Governor Jan F. Qvigstad.

The Norwegian economy has fared well through the financial crisis. High activity in the oil industry and monetary and fiscal policy measures have contributed to supporting demand for goods and services. Employment is stable and it appears that unemployment will be considerably lower than expected, despite the decline in manufacturing and the building and construction industry.

“The Executive Board considered the alternative of increasing the key policy rate at today’s meeting,” says Qvigstad.

For further information, see “The Executive Board’s monetary policy decision – background and general assessment”.

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