- Inflation has picked up markedly in recent months. Various measures of inflation show somewhat different developments, but on the whole underlying inflation is close to 2.5 per cent. Inflation is expected to move up one to two years ahead. Growth in the Norwegian economy is high, employment is rising and wage growth is picking up, says Governor Svein Gjedrem.  

On the other hand, the outlook for the global economy has weakened. Interest rates have shifted down in the US and a number of other countries. The krone has appreciated.

The analyses in Monetary Policy Report 1/08 suggest that the key policy rate may be raised further in the period to summer.
- The Executive Board’s strategy is that the key rate should be in the interval 5 – 6 per cent in the period to the publication of the next Report on 25 June, unless the Norwegian economy is exposed to major shocks. We have considered raising the key rate as an alternative, but an overall assessment indicates that it is appropriate to keep the interest rate unchanged now, says Governor Svein Gjedrem.

For more information, see “The Executive Board’s monetary policy decision – background and general assessment”.

Charts and background material