In Monetary Policy Report 2/18, which was published on 21 June 2018, the Executive Board's assessment was that the economic upturn was continuing and that capacity utilisation was close to a normal level. Underlying inflation was lower than the target, but rising capacity utilisation implied an increase in price and wage inflation further out. The Executive Board's assessment of the outlook and balance of risks suggested that the key policy rate would most likely be raised in September 2018.

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 June. Underlying inflation is below the inflation target, but the driving forces indicate that it will rise further out.

"The outlook and the balance of risks do not appear to have changed substantially since the June Report", says Governor Øystein Olsen.

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