Additional Clarity Provided To Policy Outlook

Norges Bank kept rates unchanged as expected and continued to signal that rates will likely be raised in December.

• The Bank add more clarity to the policy stance as follows: "If the Committee becomes more assured that underlying inflation is on the decline, the policy rate may be kept on hold".
• "In the Committee’s assessment, the policy rate is likely close to the level needed to tackle inflation, which provides the Committee with a little more time to assess whether there is a need to raise the policy rate further".
• They acknowledge that inflation has fallen more than expected, underlying inflation is high and they note that the weaker krona offsets this somewhat.