In Monetary Policy Report 4/19, which was published on 19 December 2019, the assessment was that the policy rate would most likely remain at 1.50 percent in the coming period. With an unchanged policy rate, there were prospects that inflation would remain close to the inflation target, and that capacity utilisation would decline towards a normal level.

The Committee’s assessment is that new information largely confirms the picture of the economic developments presented in the December Report. The risk of a sharp downturn in the global economy appears to have receded somewhat since autumn, but uncertainties surrounding global developments persist. Underlying inflation is close to the inflation target. Capacity utilisation in the Norwegian economy appears to be somewhat above a normal level, but new information supports the view that the economy is probably near a cyclical peak. The Committee’s assessment is that interest rate prospects for the coming period are little changed since the December Report.

“The Committee's current assessment of the outlook and the balance of risks suggests that the policy rate will most likely remain at the present level in the coming period”, says Governor Øystein Olsen.