Key policy rate unchanged at 1.5 percent
Norges Bank's Executive Board has decided to keep the key policy rate unchanged at 1.5 percent.
“New information suggests that inflation and growth in the Norwegian economy are broadly in line with the September projections. Against this background, the key policy rate remains unchanged. At the same time, developments abroad and the fall in oil prices has increased the uncertainty regarding the outlook for the Norwegian economy”, says Governor Øystein Olsen.
Economic growth among Norway’s trading partners is still moderate, but the outlook has deteriorated somewhat since the September 2014 Monetary Policy Report. Uncertainty regarding developments ahead has increased, particularly in the euro area. The expected rise in key rates abroad has again been deferred. Equity prices and oil prices have fallen.
In Norway, unemployment is still stable. Consumer price inflation remains close to 2.5 percent. The krone has depreciated since September, reflecting the fall in oil prices. At the same time, banks have lowered residential mortgage lending rates.
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Press conference 23 October 2014