MNI BRIEF: Norges Bank Head Says Can Soon Ease Policy A Little
MNI (LONDON) - Norges Bank Governor Ida Wolden Bache downplayed the likely extent of rate cuts in her annual address, with the Norwegian central bank yet to start the easing cycle.
"The job of bringing inflation down is not finished," Wolden Bache said adding that there was some room to ease, but policy needed to remain restrictive. Nevertheless, in a speech that centred on the openness of the Norwegian economy, she said its interest rate level "cannot over time differ significantly from the level among our trading partners."
Norges Bank kept its key rate unchanged at 4.5% in January, with Wolden Bache saying the first cut was most likely to come in March. In her annual address she also noted that currency depreciation could be advantageous if it helps a switch to a new economic reality.