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Norway keeps interest rates on hold

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Norway’s central bank kept its key policy interest rate on hold at 4.5% today, as unanimously expected by analysts, and said a tight monetary policy stance may be needed for somewhat longer than planned in order to curb inflation.

“The data so far could suggest that a tight monetary policy stance may be needed for somewhat longer than previously envisaged,” Norges Bank said in a statement.

The monetary policy committee in March forecast one rate cut this year from the current 16-year high of 4.50%, and said this would most likely come in September.

There was no new forecast released today. The next policy prediction is due on June 20.

A weakness of the Norwegian currency, coupled with signs of renewed inflation abroad, had led some analysts in recent weeks to predict that Norges Bank may eventually postpone its planned cut.

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