Norges bank governor justifies taking ‘a few years’ to increase inflation


Øystein Olsen, the Norges Bank governor, yesterday defended the central bank's decision to "use a few years to bring up inflation".

The executive board has held the benchmark interest rate at 1.5% since March 2012. Inflation, which then stood at 0.8%, has remained below the 2.5% target ever since.

If the central bank only took into account inflation when setting monetary policy, Olsen said, the interest rate "would be rapidly reduced and kept close to zero for a good while".

However, he insisted

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