|Unit||% p.a., NSA|
|Adjustments||Not Seasonally Adjusted|
|Data||08 Jul 2020||0|
|07 Jul 2020||0|
Norway's monetary policy rate (a.k.a. key policy rate or key rate) is the sight deposit rate (IRLEND.INOR), the interest rate on deposits by banks at Norges Bank, Norway's central bank. This in turn influences short-term money market rates. The Executive Board of Norges Bank sets the key rate at pre-announced times, normally every six weeks. The monetary policy decision is announced at 2:00 p.m. Oslo time on the day of the meeting.
Monetary policy is the component of economic policy concerned with influencing interest rates and liquidity in the market for the national currency, the Norwegian krone (NOK). The objective of Norway's monetary policy is to control consumer price inflation, with an operational target of 2.5 percent per year. Monetary policy is conducted by Norges Bank on behalf of Norway's government.
Until 1987, Norway used a discount rate (the rate at which banks paid for rediscounting bills of exchange in Norges Bank) as its key rate. Changes in the credit market rendered it irrelevant to monetary policy, and Norges Bank has not set a discount rate since.
During the monetary policy meeting, the Executive Board also decides on an overnight lending rate (IR%CBONLUD.INOR), but this may not be announced immediately. If not, it will appear two days later in the bank's normal daily rates reporting.
Norway's monetary policy rate is not subject to revision, but under exceptional circumstances the Executive Board may hold an unscheduled meeting to change it.