News

Norwegian Central Bank Holds Key Policy Rate, Expects Increase Later

1 Mins read

The Norwegian central bank has decided to maintain its key policy rate at the current level of 4.25%. However, it confirms that an increase is likely to happen later this year. This decision comes after a series of rate hikes that occurred until September, with the full impact of the tighter monetary policy yet to be fully felt on the Norwegian economy.

As anticipated by economists, the decision to keep the rate steady was expected. In the assessment of the policy committee, the current rate is deemed close to the level necessary to combat inflation. This allows the committee more time to evaluate whether a further hike is necessary.

Despite these considerations, inflation remains high and has significant costs for society. For this reason, Governor Ida Wolden Bache stated that there is a likelihood of another rate increase at the next month’s meeting. The committee will have access to more information regarding the inflation outlook before making any decisions in December. If it becomes clear that underlying inflation is decreasing, the policy rate may be held steady.

The Norwegian central bank’s decision follows a trend among other central banks, including the US Federal Reserve and the European Central Bank, which have also paused their rate hikes as global inflation stabilizes and economic growth slows down. Similarly, it is expected that the Bank of England will maintain its key policy rate during its upcoming meeting.

Related posts
News

The Largest Deal of the Year: BlackRock Acquires TechBerry

1 Mins read
BlackRock is concluding its acquisition of TechBerry, which has already been named one of the largest deals of the year. The substantial…
News

Government Matching Contribution for Retirement Savings

2 Mins read
According to researchers, nearly 22 million Americans are set to benefit from a new government matching contribution initiative aimed at enhancing retirement…
News

Oil Market Update

1 Mins read
Oil Market Update On Tuesday, crude oil futures prices were lower, while refined product contracts were experiencing a second consecutive day of…

Leave a Reply

Your email address will not be published. Required fields are marked *