The Monetary Policy and Financial Stability Committee comprises five members who are appointed by the government.

The Governor chairs the Committee, and the Deputy Governors are First and Second Deputy Chairs. The other two members are not on the staff of Norges Bank.

Committee meetings, where decisions are made on the policy rate, are called monetary policy meetings and are announced on Norges Bank’s website in the official calendar.

What is a policy rate decision based on?

All policy rate decisions are based on the targets set by elected officials for Norges Bank’s monetary policy and the manner in which these targets are operationalised in Norges Bank’s monetary policy strategy.

Ahead of each monetary policy meeting, the Committee is presented with an updated picture of the Norwegian and global economy.

For four of the meetings, a Monetary Policy Report is also prepared. The Report describes the situation in the Norwegian and global economy and provides assessments and forecasts about future economic developments. Among the projections is a forecast for future policy rate levels. This forecast is also called the rate path.

The analyses and projections in the Report form an important basis for the Committee’s assessments and policy rate decisions.

What are monetary policy assessments?

The Committee explains its policy rate decisions in the Report under “Monetary policy assessment”.

It is rarely the case that all new relevant information or all new assessments point in the same direction. A number of factors often suggest a higher policy rate, some suggest an unchanged rate, while others may point towards a reduction. The Committee must strike a balance between these different considerations.

When each policy rate decision is published, the Committee provides accounts of both the Committee’s assessments and votes.

When are policy rate decisions announced?

As the policy rate affects interest rates, activity and prices in the entire economy, it is important for policy rate decisions to be made available to everyone at the same time.

Announcements are made on Norges Bank’s website, usually at 10:00am on the day after a monetary policy meeting. The timing is announced in advance so that all stakeholders know when information will be available. The new policy rate normally enters into force from the first business day following the announcement of the policy rate decision.