Norges Bank reduces the deposit rate and the overnight lending rate

Norges Bank has reduced the interest rate on banks’ deposits with Norges Bank, the sight deposit rate, by 0.50 percentage point with effect from Thursday, 13 December. The overnight lending rate has also been reduced by the same amount. The sight deposit rate and overnight lending rate will then be 6.50 per cent and 8.50 per cent respectively.

Central Bank Governor Svein Gjedrem says that according to Norges Bank’s assessment, with an interest rate of 6.50 per cent ahead, the probability that inflation two years ahead will be lower than 2½ per cent is greater than the probability that it will be higher.