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 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.

The policy rate in recent years and projections for the period ahead

The chart below shows the policy rate, in percent, since 2010 and projections for the period ahead from the latest Monetary Policy Report. The solid line shows actual developments in the policy rate, while the broken line is Norges Bank's projection. The chart is updated simultaneously with publication of the Report.


Data series for the chart can be found in Monetary Policy Report with financial stability assessment

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