MNI BRIEF: Norges Bank Holds, Says March Hike Likely

Norges Bank left its policy rate on hold at 0.5% Thursday and restated its guidance that the rate "will most likely be raised in March."

The Monetary Policy and Financial Stability Committee's decision, at Governor Oystein Olsen's final meeting, was widely expected with Norges Bank on the tightening path but with the January meeting only an interim one and policy changes taking place in the quarterly forecast round meetings, the next one of which is in March.

In its assessment of developments the committee noted how a mix of surging energy prices, high goods demand and higher freight rates "have contributed to a marked rise in headline consumer price inflation in many countries" and they restated that "the policy rate should be raised towards a more normal level," underscoring further tightening ahead.