Norway central bank keeps rate at 1.5%

    Norway's central bank, as expected, kept it key policy rate unchanged at 1.50 percent, citing uncertainty surrounding the euro area but a slightly better-than-expected domestic economy.
    Central Bank Govenor Oystein Olsen said the central bank's executive board had decided the policy rate should remain in the 1-2 percent range unless the Norwegian economy was exposed to major shocks. It said the key rate should remain around this level towards the end of 2012 and then gradually rise towards a more normal level.
    "The level of uncertainty surrounding developments in Europe is now higher than it has been for some time. Although domestic developments have been slightly stronger than expected, the turbulence and weak growth prospects abroad suggest the key policy rate should be kept on hold," said Olsen in a statement.

    The Norwegian central bank surprisingly cut its rate in March, citing a weak outlook for the international economy and a strong Norwegian krone.

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