Norges Bank

The policy rate

The policy rate is Norges Bank's main instrument for stabilising inflation and developments in the Norwegian economy.

The policy rate in Norway is the interest rate on banks' overnight deposits in Norges Bank up to a specified quota.

The policy rate is set eight times a year by the Monetary Policy and Financial Stability Committee. Four times a year, Norges Bank publishes Monetary Policy Report at the same time as the announcement of the policy rate decision. The Report includes a forecast of future policy rate developments. This forecast is also called the policy rate path.

The policy rate and policy rate expectations primarily influence interbank rates and banks' interest rates on customer deposits and loans. Market rates, in turn, affect the krone exchange rate, securities prices, house prices, credit demand, consumption and investment.

Norges Bank's policy rate can also influence expectations of future inflation and economic developments. In other words, the policy rate operates on many important economic variables.

Changes in the policy rate become effective from the first business day after publication of the monetary policy decision.

Policy rate, in percent