Norges Bank maintains its Key Policy Rate at 4.50% as expected, reiterates “policy rate will likely be kept at the current level for some time ahead”

ECONOMY

• "Since the June Report, inflation has been lower than projected, and unemployment is a little higher than expected. International policy rate expectations have fallen."
• "The interest rate has contributed to cooling down the Norwegian economy, and growth is now low."

NOK

• "On the other hand, the krone has depreciated and is weaker than assumed."

POLICY

• "In its deliberations on the monetary policy trade-offs, the Committee was concerned with the possibility that if the policy rate is lowered prematurely, inflation could remain above target for too long."
• "If there are prospects that inflation will remain higher for longer than previously projected, the policy rate may be set higher."
• "If there is a more pronounced slowdown in the Norwegian economy or prospects suggest that inflation will return to target faster than projected in June, the policy rate may be lowered earlier than previously envisaged.