Norway's central bank maintained its key policy rate at 1.25 percent but said the outlook was weaker than it had forecast in December and if economic developments ahead "are broadly in line with that projected, there are prospects for a reduction in the key policy rate."
Norges Bank, which in December cut its rate by 25 basis points to counter the risk if a pronounced economic downturn, said so far the impact of that rate cut had been relatively small and house prices were still rising at a fast pace.
But oil prices have continued to drift down so activity in the petroleum industry may decrease while wage growth last year was weaker than projected and is likely to grow less than expected.
While Norges Bank left its rate steady, it added that policy rate should lie in an interval of 0.5 percent to 1.50 percent during the period ahead to the next policy report in June.
Norges Bank issued the following statement: