Norges bank held interest rate
23 June 2011
Norway's central bank held interest rates at 2.25 percent but signalled a more hawkish stance on inflation. Norges Bank said its next rate hike "may occur slightly earlier" than previously signalled as the labour market tightens in the accelerating oil-rich economy. Norges Bank said it would likely keep rates between 2.25 and 3.25 percent through Oct. 19, when its next Monetary Policy Report is due. Norges Banks Deputy Governor Jan F. Qvigstad cited a "tightening labour market" as a key factor in the bank's outlook for higher borrowing costs and said "a number of factors indicate that inflation will pick up further ahead". He said he envisaged rates at 2.75 or 3.0 percent by the end of December and at 3.5 percent "next summer".