Norges Bank holds interest rate despite risk of hike / News / The Foreigner

Norges Bank holds interest rate despite risk of hike. Norges Bank’s Executive Board has announced they are maintaining the current interest rate at 2 percent, but warns of increases in the near future. “An overall assessment suggests that the key policy rate be left unchanged at this meeting,” Deputy Governor Jan F. Qvigstad told the press today. Norges Bank justified its decision by first explaining that the underlying rate of inflation is now at approximately 1.5 percent and that the Norwegian economy is recovering as expected, albeit at a slower pace. 

norges, bank, interest, inflation, rate, hike, european, economies, jan, qvigstad



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Norges Bank holds interest rate despite risk of hike

Published on Wednesday, 15th December, 2010 at 15:38 under the news category, by Ramona Tancau.

Norges Bank’s Executive Board has announced they are maintaining the current interest rate at 2 percent, but warns of increases in the near future.

Norges Bank
Norges Bank
Photo: Mahlum/Wikimedia Commons


“An overall assessment suggests that the key policy rate be left unchanged at this meeting,” Deputy Governor Jan F. Qvigstad told the press today.

Norges Bank justified its decision by first explaining that the underlying rate of inflation is now at approximately 1.5 percent and that the Norwegian economy is recovering as expected, albeit at a slower pace. 

Oil prices are also increasing, equity price levels remain high and there is still uncertainty regarding the development of European economies, despite that Norway’s main trading partners have experienced economic growth.

However, the Deputy Governor was quick highlight the low rate will not be sustainable long-term.

”The consideration of guarding against the risk of future financial imbalances that may disturb activity and inflation somewhat further ahead suggests that the key policy rate should not be kept low for too long,” said Mr. Qvigstad.



Published on Wednesday, 15th December, 2010 at 15:38 under the news category, by Ramona Tancau.

This post has the following tags: norges, bank, interest, inflation, rate, hike, european, economies, jan, qvigstad.





  
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