“The task of battling inflation is not yet fully completed, and we are not in a hurry to lower interest rates,” stated the bank’s governor, Ida Wolden Bache, in a statement.
The Norwegian Central Bank emphasized that the monetary policy has contributed to cooling the economy and damping inflation in recent years, although it remains above the target.
“The direction estimates that a restrictive monetary policy is still necessary, inflation is too high, if rates are lowered too quickly, inflation may remain above the target for too long,” warns the statement.
The future policy on rates will depend on the evolution of the economy and inflation, specified the institution, which maintains its forecast for an annual rate cut for the next three years.
