Norway’s central bank left interest rates unchanged at 4.5% on Thursday, as expected, but signalled its willingness to hike if inflation remains high.
Source: Sharecast
Norges Bank noted that inflation remains "markedly" above target, and said the rapid rise in business costs in recent years will likely contribute to keeping inflation elevated ahead.
"High inflation over time can make inflation stickier and harder to bring down again. At the same time, the Committee does not want to restrict the economy more than needed," it said.
Governor Ida Wolden Bache said: "Inflation is too high. It will likely be necessary to keep the policy rate elevated for a time, and we are prepared to raise the policy rate if needed to bring inflation down to target within a reasonable time horizon."
At its September meeting, Norges Bank lifted the policy rate by 25 basis points.
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