"Developments in the Norwegian economy have so far been broadly in line with the March projections. On the basis of an overall assessment, the Executive Board decided to keep the key policy rate unchanged at this meeting", says Governor Øystein Olsen.

Economic growth among Norway's trading partners is still moderate. Inflation is very low in many countries. Policy rates are close to zero or negative, and expectations concerning policy rates abroad for the period ahead have fallen somewhat.

Consumer price inflation in Norway is close to 2.5 percent. As expected, unemployment has risen. This year's wage settlement suggests so far that wage growth may be somewhat lower than previously projected. On the other hand, oil prices have increased and household demand remains buoyant. House prices continue to rise and household debt has increased more than expected.

"From the information we have received recently, there are still prospects that the key policy rate will be lowered in June", says Governor Øystein Olsen.

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