MNI BRIEF: Norges Bank On Hold; Reaffirms Sep  Hike

Norges Bank left the policy rate on hold at zero percent at its August meeting, an interim one, while reaffirming its guidance that the first hike is likely to come next month. The decision was widely anticipated as there is no fresh forecast round in August and next month is the key meeting, with the committee restating that given "the outlook and balance of risks, the policy rate will most likely be raised in September."

" The brief assessment of economic developments highlighted the continuing uncertainty given the mix of Covid variants and the opening up of economies, but with Norwegian economic activity improving markedly and the committee concern about the financial stability risks from a prolonged period of ultra-low rates, it reaffirmed that it was on the tightening path.