”Underlying inflation has been approximately as projected and is now around 1½ per cent. Growth in the Norwegian economy has picked up as expected. Contacts in our regional network confirm that capacity utilisation is increasing, but that the level of activity is probably still somewhat lower than normal. Growth has been unexpectedly high among several of Norway’s most important trading partners. In addition, equity prices are holding up and oil prices have risen. On the other hand, uncertainty regarding developments in Europe persists. Central bank key rates abroad are expected to remain low for some time. An overall assessment suggests that the key policy rate be left unchanged at this meeting”, says Deputy Governor Jan F. Qvigstad.

”The consideration of guarding against the risk of future financial imbalances that may disturb activity and inflation somewhat further ahead suggests that the key policy rate should not be kept low for too long”, says Qvigstad.

For further information, see The Executive Board’s monetary policy decision – background and general assessment.

• Charts and background material