Norges Bank defends policy framework amid government review

Norges Bank

The Norwegian central bank defended its policy framework and stressed the need for flexibility on January 31, as it published its response to a government review of monetary policy.

The horizon for monetary policy has lengthened since the inflation target was introduced in 2001, reflecting greater trade-offs and larger shocks, the central bank says in the document.

Faced with "pronounced international cyclical fluctuations", declining rates abroad and strong inward migration, Norges Bank says it