Norway holds rates at zero, plans September hike

Economists polled by Reuters had been almost evenly split over whether the monetary policy-makers would point to September or December as the most probable timing of a rise.

Norway's central bank kept its key policy interest rate unchanged at a record-low 0.0% on Thursday, as expected, and said a hike will most likely follow in September as the economy recovers from the COVID-19 pandemic.

Norges Bank has long warned of a hike this year. Economists polled by Reuters had been almost evenly split over whether the monetary policy-makers would point to September or December as the most probable timing of a rise. "In the committee's current assessment of the outlook and balance of risks, the policy rate will most likely be raised in September," Norges Bank Governor Oeystein Olsen said in a statement.

Norway's currency, the crown, quickly strengthened to trade at 10.12 against the euro from 10.15 just before the 0800 GMT announcement. It later fell back, however, to trade at 10.16 at 0809 GMT.

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