MNI BRIEF: Norges Bank Holds, Not In Hurry To Cut

Norges Bank left the policy rate on hold at 4.0% at its November meeting, as widely expected, and restated its guidance that if the economy evolved as expected "the policy rate will be reduced further in the course of the coming year."

Governor Ida Wolden Bache stated that "the job of tackling inflation has not been fully completed and we are not in a hurry to reduce the policy rate."

Her comments seem to tilt away from a December cut. The economic assessment noted that, while inflation was slightly lowered than expected, restrictive policy was still needed. (see MNI NORGES WATCH: Likely To Hold, With Little Cut Timing Steer )

There were no new forecasts, with the September one showing a very gentle decline in the policy rate to 3.2% over the next three years.