Norges Bank: On hold as economy continues recovery - ING

October is an ‘in-between’ meeting for the NB as there will be no press conference and no new forecast published and the key policy rate has been set at 0.5% since early 2016 and is set to remain there until early 2019 on the NB’s latest forecast, explains the analysis team at ING.

Key Quotes

“The Norwegian economy is still recovering from the oil price shock of 2014-15. Inflation remains below target (1.6% in September vs the 2.5% target). While activity picked up in 2017, thanks in part to stronger growth in key trading partners such as Sweden and the euro area, policy is likely to remain accommodative.”

“Having nudged its interest rate forecast up slightly in June and September, the NB has tentatively started the tightening cycle. But with relatively little news since the last meeting, it would be surprising to see a major change in the NB’s stance.”