Norges Bank: Key Policy Rate 0.50% (prev. 0.25%; expectations were 90% for a 25bp hike, 10% unchanged) – Unanimous

In the Committee’s assessment, the objective of stabilising inflation around the target somewhat further out suggests that the policy rate should be raised towards a more normal level.
In addition, the new virus variant, Omicron, is generating considerable uncertainty. Together with long delivery times and sharply rising prices for many goods, this is expected to curb GDP growth in the coming quarters.
Repo Path: Dec’21 0.29% (prev. 0.28%); Mar’22 0.51% (prev. 0.57%), Jun’22 0.70% (prev. 0.78%), Sep’22 0.92% (prev. 0.98%), Dec’22 1.11% (prev. 1.12%).
The krone has weakened and is now weaker than projected in September. (prev. “Looking ahead, higher economic activity and rising wage growth will likely lift underlying inflation, but the recent krone appreciation could curb the rise in prices.”)
Countercyclical capital buffer raised to 2.00%; will be lifted to 2.50% in H1-2022, effective from one-year later.