Norges Bank keeps policy rate at 4.50
Rate remains at highest level since 2008
Policy on hold until yearend
New rate projections due in December
Inflation remains above target
OSLO, Nov 7 Reuters Norway39;s central bank held its policy interest rate unchanged at a 16year high of 4.50 on Thursday, as unanimously expected by analysts in a Reuters poll and reiterated that it will stay on hold until the end of the year.
The committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon, the central bank said in a statement.
The Norwegian monetary policy contrasts with that of other Western central banks, most of which have begun cutting rates this year.
The Swedish central bank earlier on Thursday cut rates by 50 basis points, as expected, and said that, if the economic and inflation outlooks remain the same, it may also cut the rate in December and in the first half of 2025.
The Federal Reserve, the Bank of England and the Czech National Bank are also expected to announce rate cuts later on Thursday.
Norges Bank, meanwhile, said the outlook for the Norwegian economy did not appear to have changed materially since September, when it forecast that rates would start to decline in the first quarter of 2025.
If the economy evolves as currently envisaged, the policy rate will be held at today39;s level to the end of the year, Norges Bank Governor Ida Wolden Bache told a press conference.
The…