Financial News: Norges Bank Keeps Policy Rate Steady At 4.5%

Norges Bank Keeps Policy Rate Steady At 4.5%

03/21/2024 - 09:36:00 (RTTNews)

(RTTNews) - The Norwegian central bank maintained its key interest rate at its March meeting on Thursday, as the current stance is needed for some time ahead in order to bring inflation back to the target within a reasonable time horizon.

The Monetary Policy and Financial Stability Committee, headed by Governor Ida Bache, decided to keep the policy rate at 4.50 percent, Norges Bank said in a statement on Thursday.

The previous change in the rate was a 0.25 percent hike in December.

"The policy rate will likely need to be maintained at the current level for some time ahead in order to bring inflation back to the 2 percent target within a reasonable time horizon," Governor Ida Bache said in a statement.

If there is a more pronounced slowdown in the Norwegian economy or inflation declines more rapidly, the policy rate may be lowered earlier than currently envisaged, the bank said.

The current forecast indicates that the policy rate will continue to lie at 4.5 percent in the period to autumn before gradually moving down.

Recent official data showed that Norway's consumer price inflation eased to a four-month low of 4.5 percent in February from 4.7 percent in January.

However, this was still well above target, and inflation is expected to be elevated ahead amid challenges of wage growth and the krone depreciation.

The bank expects economic growth to remain low through the first half of 2024 before picking up. Inflation is projected to slow somewhat faster this year than earlier and to approach 2 percent towards the end of 2027.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Eurozone Consumers' 12-Month Inflation Expectations Lowest Since Dec 2021 - ECB (09 hr(s), 40 min(s), 55 sec(s) ago)
(RTTNews) - Euro area consumers' inflation expectations for the next 12 months hit their lowes ...Full Story»

U.S. Consumer Sentiment Dips More Than Previously Estimated In April (10 hr(s), 44 min(s), 55 sec(s) ago)
(RTTNews) - Revised data released by the University of Michigan on Friday showed consumer sentimen ...Full Story»

U.S. Consumer Prices Rise 0.3% In March, Annual Growth Accelerates To 2.7% (11 hr(s), 34 min(s), 55 sec(s) ago)
(RTTNews) - Closely watched readings on inflation released by the Commerce Department on Friday sh ...Full Story»

Spain Unemployment Rate Rises In Q1 (12 hr(s), 02 min(s), 55 sec(s) ago)
(RTTNews) - Spain's unemployment rate increased at the start of the year, quarterly data from ...Full Story»

U.S. Consumer Prices Rise In Line With Estimates In March (12 hr(s), 21 min(s), 55 sec(s) ago)
(RTTNews) - Closely watched readings on inflation released by the Commerce Department on Friday sh ...Full Story»

Russia Central Bank Keeps Key Rate Unchanged (12 hr(s), 30 min(s), 55 sec(s) ago)
(RTTNews) - Russia's central bank left its key interest rates unchanged for the third consecut ...Full Story»

Austria Manufacturing Downturn Continues In April (13 hr(s), 40 min(s), 55 sec(s) ago)
(RTTNews) - Austria's manufacturing activity deteriorated further in April, though the pace of ...Full Story»

Eurozone Private Sector Credit Growth Remains Weak (14 hr(s), 11 min(s), 55 sec(s) ago)
(RTTNews) - Eurozone private sector credit continued to increase in March but the pace of recovery ...Full Story»