In Monetary Policy Report 4/18, which was published on 13 December 2018, the Executive Board's assessment was that capacity utilisation in the Norwegian economy was close to a normal level. Underlying inflation was close to the 2 percent target. The Executive Board's assessment of the outlook and balance of risks suggested that the policy rate would most likely be raised in March 2019.

The outlook and the balance of risks imply a gradual increase in the policy rate. Global growth is a little weaker than projected, and there continues to be considerable uncertainty surrounding developments ahead. In Norway, economic growth and labour market developments appear to be broadly as projected, while inflation has been slightly higher than expected.

"Overall, new information indicates that the outlook for the policy rate for the period ahead is little changed since the December Report", says Governor Øystein Olsen.

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