Norges Bank Keeps Key Rate Unchanged at 1.5%
January 23 2020 - 4:53AM
Dow Jones News
By Dominic Chopping
Norway's central bank left its key interest rate unchanged at
1.5% on Thursday, as expected, and reiterated its previous stance
that the policy rate will likely remain at the present level in the
coming period.
Norges Bank said the risk of a sharp downturn in the global
economy appears to have receded somewhat since autumn, while new
information indicates that the interest rate outlook hasn't changed
much since its monetary policy report in December, with underlying
inflation close to target.
However, the central bank said that the committee noted signs
that growth in the Norwegian economy is slowing, with low GDP
growth in November suggesting that the economy grew slightly less
towards the end of 2019 than projected. In addition, the Norwegian
Petroleum Directorate estimates that petroleum investment in 2020
may be somewhat lower than assumed in the December report.
It added that capacity utilization in the Norwegian economy
appears to be somewhat above a normal level, but new information
supports the view that the economy is probably near a cyclical
peak.
"The Committee's current assessment of the outlook and the
balance of risks suggests that the policy rate will most likely
remain at the present level in the coming period," said Central
Bank Governor Oystein Olsen.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 23, 2020 04:38 ET (09:38 GMT)
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