Norway central bank holds key policy rate at zero

Economists polled by Reuters had unanimously predicted rates would remain on hold on Thursday. Norges Bank cut the cost of borrowing three times between March and May to cushion the economy from the effects of the COVID-19 pandemic, and predicted in September that rates would start to rise in late 2022.

Norway's central bank kept its key policy interest rate on hold at a record low zero percent on Thursday, as expected, and said the economy was developing largely as anticipated.

"The sharp economic downturn and considerable uncertainty surrounding the outlook suggest keeping the policy rate on hold until there are clear signs that economic conditions are normalising," Norges Bank said. Economists polled by Reuters had unanimously predicted rates would remain on hold on Thursday.

Norges Bank cut the cost of borrowing three times between March and May to cushion the economy from the effects of the COVID-19 pandemic, and predicted in September that rates would start to rise in late 2022. The central bank will next update its future rate path in December, when it is due to release its quarterly monetary policy report containing detailed forecasts for the economy and interest rates.

Most economists polled by Reuters expected rates to begin rising in the first half of 2022 at the earliest.