Norway on track for March rate hike, central bank says

"Based on the committee's current assessment of the outlook and balance of risks, the policy rate will most likely be raised in March," Governor Oeystein Olsen said in a statement. Norges Bank last month raised its deposit rate for a second time since September and said it aims to lift the benchmark a further three times in 2022, placing it among the most aggressive rate setter in the developed world.

Norway's central bank said on Thursday it plans to raise its key policy interest rate in March, maintaining a campaign of tightening that began last year as the economy recovers from the pandemic.

Norges Bank's five-member monetary policy committee unanimously agreed to keep the rate on hold at 0.5% for now, as expected in a Reuters poll of economists. "Based on the committee's current assessment of the outlook and balance of risks, the policy rate will most likely be raised in March," Governor Oeystein Olsen said in a statement.

Norges Bank last month raised its deposit rate for a second time since September and said it aims to lift the benchmark a further three times in 2022, placing it among the most aggressive rate setter in the developed world. Olsen is due to step down at the end of February however and will be replaced by a yet-to-be-named successor.

The crown currency weakened slightly to 9.97 against the euro at 0905 GMT from 9.96 just before Norges Bank's announcement.