Norway leaves key rate steady at 2.0 percent

Norway's central bank left its benchmark interest rate unchanged at 2.0 percent on Wednesday, a decision it justified by the slow recovery in western countries. Despite a steadier-than-expected rebound in the first quarter for Norway's main economic partners and sustained growth in Asia, prospects for growth have lowered in the United States and are to be slightly less than expected in the eurozone, Norges Bank noted in a statement.
The gloomy economic situation elsewhere, and its effect on rates, is what kept the bank from hiking Norway's key rate, which could have been justified by the good performance of the Norwegian economy. Bank deputy governor Jan F. Qvigstad said in Wednesday's statement that Norway's key rate "should be gradually brought closer to a more normal level."