”The work to get control over the price increases is not completed, but by carefully easing the brakes, we create conditions for the price increases to return to the inflation target without braking the economy more than necessary”, says the central bank chief Ida Wolden Bache in a press release.
In August, the core inflation in Norway landed at 3.1 percent, a good bit above the target of 2 percent. According to NRK, some assessors point out that at present, there is no need for an interest rate cut. But the central bank believes that other considerations weigh heavier.
”The interest rate committee considered keeping the interest rates unchanged at this meeting, but came to the conclusion that it is suitable to lower the interest rates now”, the committee writes in its press release, according to NRK.
