Norway’s central bank left its key interest rate unchanged and signaled that the rate would most likely be raised in December, adding that policymakers assessed that the rate is likely close to the level needed to curb inflation.
Norges Bank’s Monetary Policy and Financial Stability Committee unanimously held the policy rate steady at 4.25 percent.
“The Committee will have received more information about the inflation outlook ahead of its monetary policy meeting in December,” Governor Ida Wolden Bache said.
“If the Committee becomes more assured that underlying inflation is on the decline, the policy rate may be kept on hold.”
The bank said monetary policy is now having a tightening effect on the economy, and the full effects of the past rate hikes are yet to be seen. “In the Committee’s assessment, the policy rate is likely close to the level needed to tackle inflation, which provides the Committee with a little more time to assess whether there is a need to raise the policy rate further,” the bank added.