Norges Bank Increased Interest Rates

Norway’s Central Bank (Norges Bank) Executive Board Decided to Increase the Key Interest Rate by 0.25 percentage point to 1.50 %.

– Inflation has been slightly higher than expected. Unemployment is considerably lower than previously estimated. The global economy is in a deep downturn, but there are signs of renewed growth. Activity in the Norwegian economy has improved more rapidly than expected. Developments indicate that it is appropriate to raise the key policy rate now, said Governor Svein Gjedrem.

The Executive Board’s strategy is that the key policy rate should be in the interval 1¼ – 2¼ per cent in the period till the publication of the next Monetary Policy Report on 24 March 2010, unless the Norwegian economy is exposed to new major shocks.

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