- We decided to keep the interest rate unchanged at today’s meeting. Inflation and the level of activity may for a period be somewhat lower than anticipated. The analyses presented today indicate that the key policy rate should be raised gradually, but somewhat later than expected in autumn, says Deputy Governor Jan F. Qvigstad.  

- According to the Bank’s regional network, output is rising, but growth is not high and some industries are still in decline, says Qvigstad.

Growth is strong in Asia, but the upswing in Europe is only moderate.  Interest rate expectations abroad have fallen markedly and the interest rate differential against other countries has widened since autumn. As a result, the krone is stronger than expected.  Combined with prospects for lower wage growth, this will exert downward pressure on inflation further ahead in 2010.

The Executive Board’s strategy is that the key policy rate should be in the interval 1½-2½ per cent in the period to the publication of the next Monetary Policy Report on 23 June unless the Norwegian economy is exposed to new major shocks.

For further information, see The Executive Board’s monetary policy decision – background and general assessment

• Charts and background material