In Monetary Policy Report 3/19, which was published on 19 September 2019, the Executive Board’s assessment was that capacity utilisation in the Norwegian economy was somewhat above a normal level. Underlying inflation was close to the 2 percent inflation target. The policy rate was raised by 0.25 percentage point to 1.50 percent. The Executive Board’s assessment of the outlook and balance of risks suggested that the policy rate would most likely remain at this level in the coming period.
The Executive Board’s assessment is that new information indicates that the policy rate outlook for the coming period is little changed since the September Report. The upturn in the Norwegian economy is continuing broadly in line with expectations in September. Underlying inflation has been as projected. Global uncertainty persists, and interest rates abroad are very low. At the same time, the weak krone may result in higher inflation ahead.
“The Executive Board’s current assessment of the outlook and balance of risks suggests that the policy rate will most likely remain at the present level in the coming period,” says Governor Øystein Olsen.
Norges Bank’s Executive Board has decided to keep the policy rate unchanged at 1.50 percent.