OSLO, June 20 (Reuters) - The following is the text of the
Norwegian central bank's interest rate decision on Thursday
issued after it decided to keep the benchmark rate unchanged at
'Activity in the Norwegian economy appears to be lower than
anticipated earlier. On the other hand, inflation has been
slightly higher than projected and the krone has depreciated
somewhat. Against this background, the key policy rate was left
unchanged at this meeting,' says Governor ??ystein Olsen.
'The key policy rate is low because inflation is low and
because interest rates abroad are very low. At the same time,
there is a substantial spread between the key policy rate and
the interest rates facing households and enterprises.
'Growth prospects for both Norway and the global economy
have weakened slightly. Capacity utilisation in the Norwegian
economy is now assessed to be close to a normal level. Wage
growth has slowed. There are prospects that it will take longer
for inflation to move up towards the inflation target.
'The analyses suggest that the key policy rate be kept lower
than projected earlier. There are prospects that the key policy
rate will remain at the current level, or somewhat lower, in the
'At the meeting, the Executive Board decided that key policy
rate should be in the interval 1%-2% in the period to the
publication of the next Report on 19 September 2013, unless the
Norwegian economy is exposed to new major shocks.
(Reporting by Victoria Klesty)
Keywords: NORWAY RATES/
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