"The outlook for inflation and output is little changed since June. The key policy rate has therefore been left unchanged", says Governor Øystein Olsen.

The moderate economic recovery is continuing among trading partner countries, but growth prospects are somewhat weaker than previously envisaged. Policy rates have been lowered in the euro area and Sweden. The expected increase in policy rates abroad has been pushed further out.

In Norway, consumer prices and output increased to a somewhat further extent than projected in the June Report, but much of the increase likely reflects temporary conditions. In August, the enterprises in Norges Bank's regional network reported continued moderate growth in production. Capacity utilisation may edge down in the coming year, but is projected to rise gradually thereafter to close to a normal level. Inflation is projected to run somewhat below, but close to, 2.5 percent in the years ahead.

- The analyses in the Monetary Policy Report presented today imply that the key policy rate will remain at the present level to the end of 2015, rising gradually thereafter," says Governor Øystein Olsen.

At its meeting, the Executive Board decided that the key policy rate should be in the interval 1%-2% in the period to the publication of the next Report on 11 December 2014, unless the Norwegian economy is exposed to new major shocks. 

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