Norges Bank leaves rates unchanged – Business

the Norges Bank left its key interest rate unchanged on Thursday, reports Bloomberg News. Folioräntan is thus remain at 0.50 per cent.

According to TDN Finans survey counted 11 of 13 polled economists with that Norges Bank would leave its key interest rate unchanged.

the policy rate was adjusted by 17 march 2016, when it was lowered by 25 basis points, to 0.50%.

the repo-rate Path bottoms out at 0.40%. In the forecast in June stemmed from the repo rate path of 0.25 per cent.

central bank Governor Øystein Olsen says in a comment that the rise in prices in Norway has been unexpectedly high in recent months. At the same time, there are signs that growth in the Norwegian economy is increasing a little faster than foreseen in June. In addition, the growth in housing prices had increased and has been higher than expected. Low interest rates can contribute to house prices held up, and increases the vulnerability of the financial system.

On the other hand, growth in the Norwegian economy is moderate and the capacity utilization rate is below the normal level. Low kostnadstillväxt and a somewhat stronger krona makes pristillväxten is likely to wane over time.

“That we now value prospects so will the policy rate most likely remain at the current level in the nearest time”, says governor Øystein Olsen.

Norges Bank writes that the analysis in the monetary policy report imply a key rate that is close to 0.50 per cent in the coming years. At the same time, it means that there is a slightly greater probability that interest rates are lowered than it is raised for the next year.