Investing.com — Norway’s hiked its policy rate to 1.5% from 1.25%, saying that “Growth in the Norwegian economy remains solid, and capacity utilzation is somewhat above a normal level,” adding that “underlying inflation is close to the inflation target.” However, it revised down its estimates for the future path of the policy rate, citing “weaker growth prospects and lower interest rates abroad.”
- Says higher policy rate needed to “mitigate the risk of a renewed acceleration in debt growth and house price inflation.”
- Warns that “considerable uncertainty surrounding global growth prospects” warrants caution in future.
- Krone strengthens to 1-month high vs dollar in response; USD/NOK at 8.9046 vs 8.9426 before the announcement.
- EUR/NOK at 9.8589 vs 9.8951 beforehand, testing two-month low.
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