Norway’s central bank left the key interest rate unchanged on Thursday, but continued to forecast a hike in September.
The Monetary Policy and Financial Stability Committee unanimously decided to keep the policy rate unchanged at zero percent, the Norges Bank said in a statement.
“In the Committee’s current assessment of the outlook and balance of risks, the policy rate will most likely be raised in September”, Norges Bank Governor Oystein Olsen said.
“The Committee judges that there is still a need for an expansionary monetary policy stance,” Olsen said.
The beginning of normalization of economic conditions suggests that it will soon be appropriate to raise the policy rate from the current level, the central banker added.