In Monetary Policy Report 4/17 the Executive Board's assessment was that there was a continued need for an expansionary monetary policy. Domestic capacity utilisation was assessed to be somewhat below a normal level, and inflation was expected to remain below 2.5 percent in the coming years. The Executive Board's assessment of the outlook and the balance of risks suggested that the key policy rate would remain at 0.5 percent in the period ahead.

The Executive Board's assessment is that the upturn in the Norwegian economy appears to be continuing, broadly in line with the picture presented in the December Report. Inflation is low, but has moved up as expected.

"The outlook and the balance of risks for the Norwegian economy do not appear to have changed substantially since the December Report. The Executive Board therefore decided to keep the key policy rate unchanged at this meeting", says Governor Øystein Olsen.

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