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

unchanged at 0.50 percent.

     In Monetary Policy Report 2/18, which was published on 21 June 2018, the

Executive Board's assessment was that the economic upturn was continuing and

that capacity utilisation was close to a normal level. Underlying inflation was

lower than the target, but rising capacity utilisation implied an increase in

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 in September 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

June. Underlying inflation is below the inflation target, but the driving forces

indicate that it will rise further out.

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

substantially since the June Report", says Governor Oystein Olsen.

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

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