The central bank takes account of developments in equity prices and property prices when projecting inflation and output, said Svein Gjedrem, the governor of the Norges Bank.

Gjedrem said Norges Bank's interest rate setting did not rely solely on one simple rule, such as the Taylor rule. Instead, he said, the central bank sought to take account of all factors that influenced inflation and output in the medium term, and the key policy rate was set on the basis of an overall assessment. Asset