“The decision must especially be seen against the background of the recent flare-up in financial market turbulence and clear signs of weaker growth internationally,” says Governor Øystein Olsen.

The analyses Norges Bank presented in June suggested a gradual increase in the key policy rate through the latter half of the year. The Norwegian economy is still growing at a robust pace and domestic developments have been broadly in line with that projected. This suggests that the key policy rate should be raised further. On the other hand, inflation is low. Growth among trading partners appears to be weaker than expected. Combined with the turbulence in financial markets, this also has an impact on the outlook for the Norwegian economy. “An overall assessment of the outlook and the balance of risk suggests that the key policy rate be left unchanged at this meeting,” says Governor Olsen.

For further information, see The Executive Board’s monetary policy decision – background and general assessment and “The Executive Board’s assessment” in the June 2011 Monetary Policy Report.

• Charts and background material