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Norway Signals Faster Rate Increases After Price Target Shakeup

  • Key interest rate kept as estimated at record low of 0.5%
  • Rate path raised to signal a potential September increase
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Norges Bank Governor Oystein Olsen discusses Norway’s interest-rate path, the krone, inflation and the economy.Source: Bloomberg
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Norway’s central bank signaled it will move faster in raising interest rates as a change in the inflation target and accelerating growth opens up for the first tightening in seven years.

Policy makers said an increase is likely after the summer of 2018, raising their rate path to pencil in a tightening by September. They kept the benchmark deposit rate at a record low of 0.5 percent, which was as anticipated by all 24 analysts surveyed by Bloomberg. The krone surged as much as 0.9 percent, hitting the strongest since November.