» Central Bank Outlook: Norway Policy Held Decision Economics

Central Bank Outlook: Norway Policy Held

Posted June 20, 2012 by Editor


  •  The Norges Bank held its policy rate unchanged at 1.5%, but has advanced the timetable for rate hikes (from Q2 2013 to Q4 2012) as its policy statement has taken a more hawkish stance.
  • Domestic growth has been stronger-than-expected, but so have external headwinds. The Norges Bank decision to hold reflects current downside risks to the situation in the Eurozone, but also signals a desire to fly under the radar as Norwegian interest rates are among the highest in industrial countries.