OSLO (Reuters) – Norway’s central bank on Friday kept its key rate at 4.5% as expected and warned that restrictive monetary policy may be needed for longer than expected to curb inflation.
“The data available so far could suggest that tight monetary policy may be necessary for a little longer than expected,” Norges Bank said in a statement.
In March, the monetary policy committee of the Norwegian central bank said it expected a rate cut this year, probably in September.
The central bank did not give any forecasts on Friday. Its next monetary policy decision will take place on June 20.
The weakness of the Norwegian crown, combined with signs of a rebound in inflation, had recently pushed some analysts to anticipate a postponement of the expected rate cut.
(Written by Terje Solsvik, Blandine Hénault for the French version, edited by Kate Entringer)
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