2021.05.0609:05:00UTC+00Norway Central Bank Keeps Rate Unchanged

Norway's central bank retained its policy rate and reiterated that the rate will be hiked in the latter half of this year.

The Monetary Policy and Financial Stability Committee of Norges Bank unanimously decided to hold the policy rate at zero percent.

"In the Committee's current assessment of the outlook and balance of risks, the policy rate will most likely be raised in the latter half of 2021", Governor ?ystein Olsen said.

The committee observed that economic activity will pick up through the year as much of the adult population is expected to be vaccinated by the end of summer.

Policymakers viewed that there is need for a continued expansionary monetary policy stance. There is still uncertainty surrounding the economic recovery ahead.

When there are clear signs that economic conditions are normalising, it will again be appropriate to raise the policy rate gradually from the today's level, Olsen added.

Given that the Bank tends not to be timid, the bank is expected to tighten faster than it currently projects, and that it will also start to "lean against" the housing market over the coming months, David Oxley, an economist at Capital Economics, said.