Norway Backtracks on Zero Rate Outlook as Oil Crisis Abates
- Bank lifts rate outlook, still sees one more rate cut in 2016
- Bank sees economy growing 0.8% in 2016, unchanged from earlier
This article is for subscribers only.
Norway’s central bank signaled it intends to deliver less monetary stimulus in the future despite gains in the currency as a recovery in oil prices helps western Europe’s biggest petroleum producer.
The bank left its main rate at 0.50 percent, as forecast by 14 of 15 analysts surveyed by Bloomberg. It raised its outlook for future interest rates, but said there’s still a chance it may need to cut one more time this year. The krone appreciated as much as 0.4 percent against the euro.