MNI: Norges Bank Leaves Rates Unchanged At 0.50% - Text

     LONDON (MNI) - The Norges Bank has kept its key policy rate unchanged at

0.50%, assessing with the Executive Board assessing rates will most likely be

hiked 'after Summer 2018'.

     The full text of the Norges Bank statement follows.

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     KEY POLICY RATE UNCHANGED AT 0.5 PERCENT 

     Norges Bank's Executive Board has decided to keep the key policy rate

unchanged at 0.50 percent.

     In the March 2018 Monetary Policy Report, the Executive Board's assessment

was that the economic upturn was continuing and that the output gap in the

Norwegian economy was closing. Underlying inflation was low, but rising capacity

utilisation was expected to push up price and wage inflation further out. The

Executive Board's assessment of the outlook and balance of risks suggested that

the key policy rate would most likely be raised after summer 2018.

     The Executive Board's assessment is that the upturn in the Norwegian

economy appears to be continuing broadly in line with the picture presented in

the March Report. Underlying inflation is below the inflation target, but the

driving forces indicate that it will rise.

     "The outlook and the balance of risks do not appear to have changed

substantially since the March Report. This suggests keeping the key policy rate

unchanged at this meeting", says Governor Oystein Olsen.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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