Household debt continues to rise faster than income, but debt growth has slowed somewhat over the past year. House price inflation has been low in recent months, following a recovery from the fall in prices in 2017. Looking ahead, gradually rising interest rates, housing completions and low population growth are expected to restrain house price inflation. The pronounced rise in commercial real estate prices in recent years has increased the risk of a marked decline in prices further out.

"Our overall assessment of financial imbalances is little changed since the second quarter", says Governor Øystein Olsen.

In line with Norges Bank's advice, the Ministry of Finance decided today to keep the buffer rate unchanged at 2 percent.

• Ministry of Finance press release
• Norges Bank's advice is issued in the letter: Advice on the countercyclical capital buffer 2018 Q3
• The decision basis for Norges Bank's advice is presented in Section 5 of the September 2018 Monetary Policy Report and Indicators of financial imbalances