Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% today, as unanimously expected by analysts in a Reuters poll, and said a tight stance will likely be needed for some time to combat inflation.
"Based on our current assessment of the outlook, the policy rate will likely be kept at the current level for some time ahead," Norges Bank Governor Ida Wolden Bache said in a statement.
The Norwegian crown weakened to 11.78 against the euro at 0816 GMT, from 11.76 just before the announcement.
Norges Bank's monetary policy committee in June pushed back its prediction for a rate reduction to the early part of 2025 from September, citing above-target inflation and currency weakness that keeps import prices high.
But it made no mention on Thursday of when it might begin cutting, pointing instead to "uncertainty about future economic developments", and said it was particularly concerned with the inflation implications of the Norwegian crown's movements.
"The committee will have received more information about economic developments ahead of its next monetary policy meeting in September, when new forecasts will be presented," it said in a statement.
