"Overall developments in the Norwegian economy have been broadly in line with expectations. The key policy rate has therefore been left unchanged", says Deputy Governor Jan F. Qvigstad.

Growth prospects for the euro area have weakened somewhat, but global growth remains robust. Interest rates abroad have fallen further. In Norway, inflation has been slightly lower than expected, and there are prospects that wages will rise somewhat less than projected. On the other hand, the krone has depreciated. The Norwegian economy is growing at a solid pace and unemployment is low. Household debt continues to rise from a high level.

The key policy rate is low because inflation is low and because external interest rates are very low.

"In March, the key policy rate was projected to remain at around the current level for the next year before being raised gradually towards a more normal level. There is no basis for changing this assessment now", says Deputy Governor Qvigstad.

For further information, see "The Executive Board's monetary policy decision – background and general assessment" and "The Executive Board's assessment" in the March Monetary Policy Report with financial stability assessment. Or contact:

Charts and background material