Norges Bank stands pat, interest rates likely to stay unchanged in December

The Norwegian central bank, Norges Bank, kept its key interest rate on hold today, as was expected. The central bank’s statement indicates no change in its view.

“With no new rate path and only a statement being released, the question was whether Norges Bank’s assessment indicated any change in its view, especially given that NOK is significantly weaker than expected”, noted Nordea Bank in a research report.

Norges Bank, in its statement, indicates no major change in its view. Therefore, rates are expected to stay on hold during the December meeting. In the assessment, Norges Bank states that developments since the last monetary policy report in September have been roughly as expected.

“It is understandable that Norges Bank did not send any strong signals at this interim meeting and took a wait-and-see stance pertaining to the NOK. Norges Bank wishes to wait until December – when the central bank’s economists will make the new rate path – and in the meantime continue to monitor the developments of NOK. If the current NOK weakness continues over the next couple of months, we should expect the rate path to be revised up in December”, added Nordea Bank.