In the March 2018 Monetary Policy Report, the Executive Board's assessment was that the economic upturn was continuing and that the output gap in the Norwegian economy was closing. Underlying inflation was low, but rising capacity utilisation was expected to push up price and wage inflation further out. The Executive Board's assessment of the outlook and balance of risks suggested that the key policy rate would most likely be raised after summer 2018.

The Executive Board's assessment is that the upturn in the Norwegian economy appears to be continuing broadly in line with the picture presented in the March Report. Underlying inflation is below the inflation target, but the driving forces indicate that it will rise.

"The outlook and the balance of risks do not appear to have changed substantially since the March Report. This suggests keeping the key policy rate unchanged at this meeting", says Governor Øystein Olsen.

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