Norges Bank Inflation Report, June 2005

Norway's central bank, Norges Bank, published its latest Inflation Report for June 2005 on Thursday 30 June. The Bank raised the sight deposit rate to 2% from 1.75% but conceded that recent developments such as weaker economic growth prospects for Europe could have meant that interest rates should be increased at a later time.

However, it said its board decided to raise rates now after weighing the objective of bringing inflation back to target and stabilising inflation expectations.

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