- Inflation has been slightly higher than expected. Unemployment is considerably lower than previously projected. The global economy is in a deep downturn, but there are signs of renewed growth. Activity in the Norwegian economy has picked up more rapidly than expected. The Executive Board considered the alternative of increasing the key policy rate at the previous monetary policy meeting. Developments indicate that it is appropriate to raise the key policy rate now, says Governor Svein Gjedrem.

The Executive Board’s strategy is that the key policy rate should be in the interval 1¼ - 2¼ per cent in the period to the publication of the next Monetary Policy Report on 24 March 2010, unless the Norwegian economy is exposed to new major shocks.

- The analyses in Monetary Policy Report 3/09 indicate that the key policy rate should thereafter be raised gradually, says Governor Gjedrem. 

For further information, see “The Executive Board’s monetary policy decision – background and general assessment” and Monetary Policy Report 3/09.

• Charts and background material