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Case for loosening policy by Norges Bank remains fairly strong

Thursday, May 7, 2015 5:08 PM UTC

The Norges Bank left its policy rate unchanged at 1.25% on Thursday, but the case for loosening policy remains fairly strong.

The labour market has shown signs of weakening recently and economic growth prospects are still fairly poor. What's more, the rise in oil prices will probably provide only a small and temporary boost to the economy.

Capital Economics expects the Norges Bank to lower its policy rate to 1.00% next month.

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Case for loosening policy by Norges Bank remains fairly strong

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