MNI BRIEF: Norges Bank Head Says Inflation Too High

The simple reason that the Norwegian central bank has not cut its policy rate as fast as other advanced economy central banks is "that inflation is still too high" and noted that it has been around 3 per cent since the Autumn with the January outturn higher than expected, Norges Bank Governor Ida Wolden Bache said Thursday.

Wolden Bache, in her annual address, said wages had risen faster than prices and employment had increased, supporting a pick up in household consumption. Following the January decision she said that they were not in a hurry to reduce the policy rate further and she offered no fresh guidance in this speech.

The Norges Bank head revealed that, for the first time, in the course of this year, they would start to publish summaries of the policy committees discussions rather than only its conclusion, enhancing transparency. (see MNI INTERVIEW: Norges Bank More Restrictive Than Implied By R* )