Norway

By DPA

Norway’s central bank on Thursday kept its benchmark interest rate unchanged at a historic low of 0 per cent, citing economic uncertainty amid the Coronavirus pandemic.

Higher infection rates and stricter containment measures were holding back the continued economic recovery, the central bank said.

Norges Bank noted “positive news about vaccines and there are prospects that vaccination can begin in the very near future’’

This could result in a faster rise in economic activity, but “it will probably take time for output and employment to return to pre-pandemic levels,’’ it added.

Norges Bank introduced the zero rate in May, following two interest rate cuts in March.

The central bank’s policy rate forecast suggested that the current zero rate would remain for more than a year.

Oil and gas exporter Norway is not a member of the European Union and has its own currency, the krone. (dpa)