Norway central bank keeps rate on hold, may hike again
TLT•Norges Bank held its policy rate at 4.50% and said it may raise rates if needed to bring inflation down. Core inflation was 3.0% in September, above the bank’s 2% target.
1. Rate remains on hold
Norges Bank kept its policy interest rate at 4.50% on Thursday and reiterated that it may tighten policy if needed to contain inflation. Governor Ida Wolden Bache said rates would likely need to remain elevated for a time.
2. Inflation and outlook
Annual core inflation stood at 3.0% in September, above the central bank’s target of around 2%. The bank said Middle East conflicts continued to create substantial uncertainty about the inflation outlook, while the Norwegian crown had appreciated more than expected since September and higher-than-assumed energy prices were pushing inflation in opposite directions.
