Norway's central bank decided to keep its key rate at 0.50% and said it would likely begin to increase it in autumn 2018, as inflation looks set to remain below the target of 2.5% in the coming years.
The country's economic upturn is continuing and the output gap seems to be somewhat narrower than previously thought, Norges Bank said. Inflation is low but the currency has weakened further in September and this may lead to a faster rise in inflation. Wage growth is also likely to increase as spare capacity is absorbed.
"The executive board's current assessment of the outlook and balance of risks suggests that the key policy rate will remain at today's level in the period ahead," Governor Øystein Olsen said.
