Norges Bank leaves its Key Policy Rate at 4.50% as expected; "the policy rate will most likely be kept at 4.5 percent to the end of 2024"

• "The Committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon."


• "The outlook for the Norwegian economy does not appear to have changed materially since the previous monetary policy meeting. In its discussions up to this monetary policy meeting, the Committee gave weight to the fact that inflation has slowed faster than expected over the past year and that it was also lower in September than projected."


• "In its discussions up to this monetary policy meeting, the Committee gave weight to the fact that inflation has slowed faster than expected over the past year and that it was also lower in September than projected."

NOK:

• "But the krone depreciation in recent years and the rapid rise in business costs are likely to restrain further disinflation."


• "In its discussions up to this monetary policy meeting, the Committee gave weight to the fact that inflation has slowed faster than expected over the past year and that it was also lower in September than projected."


• "On the other hand, international policy rate expectations have increased, and the krone has been a little weaker than assumed."

Analysis details (09:10)

• As expected, Norges Bank left its Key Policy Rate unchanged at 4.50% and noted that "the policy rate will most likely be kept at 4.5 percent to the end of 2024"; in-fitting with the guidance seen at the September meeting, which currently points to a first cut to be delivered in Q1'25. The Bank once again brought focus on the NOK, noting that the "krone has been little weaker than assumed" - a factor which has continued to play against any dovishness at recent meetings. Following the announcement, the NOK saw very modest strength, but ultimately EUR/NOK resides at pre-announcement levels, given the lack of surprises.

07 Nov 2024 - 09:00- Important- Source: Reuters