Abstract

The neutral real interest rate (r∗) can serve as a benchmark for central banks when evaluating the appropriate stance of monetary policy. This paper presents updated estimates of the neutral rate for Norway and documents the current suite of models employed by Norges Bank. Relative to previous years, two additional models including more financial data have been integrated into the model portfolio. The models indicate a gradual upward trend in the Norwegian r∗ in the post-pandemic period. The current average point estimate from the model portfolio is 0.4 percent.