Norway C. Bank Holds Rates, Repeats Hike Possible in Coming Yr
Norges Bank held the policy rate steady at 5.75% as we widely expected.
In the statement accompanying the rate announcement, Governor Gjedrem said that “the key policy rate will remain at the current level, or perhaps somewhat higher, in the coming year. New information does not provide a basis for departing from the strategy set out in June”.
This strategy indicated the possibility of another 25 bp rate hike in late 2008/early 2009.
Meanwhile, the Norges Bank says it is likely that Sweden’s Riksbank will hike its repo rate next month.