Norway's central bank on Wednesday decided to keep its policy interest rate unchanged at 1.5 percent for the seventh time in a row amid significant weakening of the krone and falling inflation. The decision was in line with expectations.
"Overall developments in the Norwegian economy have been broadly in line with expectations. The key policy rate has therefore been left unchanged", Deputy Governor Jan Qvigstad said.
The Norwegian economy is growing at a solid pace and unemployment is low. However, household debt continues to rise from a high level, and there are prospects that wages will rise somewhat less than projected, the central bank said.
The bank also maintained its earlier projection that the key policy rate would remain at around the current level for the next year before being raised gradually towards a more normal level.
Norway's inflation increased modestly to 1.4 percent March from 1 percent in February, but stayed below the central bank's target.
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