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 now assessing rates will most likely

be hiked in 'September 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.

     The upturn in the Norwegian economy is continuing. Capacity utilisation

appears to be close to a normal level and is likely rising faster than expected

earlier. Underlying inflation is lower than the inflation target, but rising

capacity utilisation implies an increase in price and wage inflation further

out.

     Monetary policy is expansionary. The outlook for the Norwegian economy

suggests that it will soon be appropriate to raise the key policy rate.

Uncertainty surrounding the effects of a higher interest rate suggests a

cautious approach. As in March, the overall outlook and the balance of risks

imply a gradual rate rise in the years ahead.

     "The Executive Board's current assessment of the outlook and balance of

risks suggests that the key policy rate will most likely be raised in September

2018", says Governor Oystein Olsen.

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

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