In Monetary Policy Report 1/19, which was published on 21 March 2019, the Executive Board's assessment was that capacity utilisation in the Norwegian economy was slightly above a normal level. Underlying inflation was a little higher than the 2 percent inflation target. The policy rate was raised by 0.25 percentage point to 1.0 percent in March. The Executive Board's assessment of the outlook and balance of risks suggested that the policy rate would most likely be raised in the course of the next half-year.

The outlook and balance of risks continues to imply a gradual increase in the policy rate. The uncertainty surrounding global developments persists. In Norway, capacity utilisation appears to be rising broadly as expected, while inflation has been slightly higher than projected. Overall, new information indicates that the outlook for the policy rate for the period ahead is little changed since the March Report.

The Executive Board decided to keep the policy rate unchanged at 1.0 percent.

"The Executive Board's current assessment of the outlook and balance of risks suggests that the policy rate will most likely be raised in June", says Governor Øystein Olsen.