Norway Central Bank Holds Key Rate at 4.5%
January 25 2024 - 3:53AM
Dow Jones News
By Dominic Chopping
Norway's central bank kept its key policy rate on hold at 4.5%
Thursday and said it will likely stay at that level for some time
ahead as high wage growth and last year's krone depreciation will
probably prevent a quick fall in inflation.
The decision was in line with both a Dow Jones poll before the
decision and Norges Bank's guidance from its last meeting.
Inflation is markedly above target and although underlying
inflation has declined further it is still high, the bank said.
"The committee assesses that the policy rate is now sufficiently
high to return inflation to target within a reasonable time
horizon," Governor Ida Wolden Bache said.
The bank said that to ensure inflation comes down it will likely
need to maintain a tight monetary policy stance for some time
ahead, but further out, when inflation falls back and economic
conditions warrant, the committee can start lowering the policy
rate.
No new forecasts were presented at the meeting, but in the
previous monetary policy report Norges Bank's forecast indicated
that the policy rate will remain at around 4.5% until autumn 2024
before gradually falling.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 25, 2024 04:38 ET (09:38 GMT)
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