The Guardian: Norway's c.bank keeps rate steady at 5.25 pct

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Norway's c.bank keeps rate steady at 5.25 pct

Norway's central bank held its main interest rate steady at 5.25 percent on Wednesday as forecast by analysts , with a brisk domestic economy offset by weaker global growth prospects. The bank was unswayed by a surprise U.S. Federal Reserve rate cut of 75 basis points on Tuesday. Eleven economists in a Reuters poll last week unanimously predicted that Norges Bank would keep rates unchanged. The bank has raised the deposit rate 14 times from an all-time low of 1.75 percent in mid-2005 in a bid to maintain stability and avoid overheating in a booming economy. Some analysts say the Norwegian tightening cycle has come to an end, but others have forecast one or two more 25 basis points increases this year.