OSLO: Norway's central bank is expected to keep its key policy interest rate at a record low 0.50 percent on June 22 and could start hiking rates next year, a Reuters poll of economists showed on Friday.
Oil producer Norway has seen lower growth and higher unemployment following the sharp drop in crude prices since mid-2014, but the central bank and the government both expect a gradual recovery.
Recent strong data, including GDP, unemployment and business sentiment, may point to the central bank lifting its own forecast of future rates, although below-target inflation and low European rates still keep the bank from hiking at this time.
"We do expect a more hawkish tone from the Norges Bank, and the rate profile will have to be closely watched," brokerage HSBC wrote.
Five of the ten economists who provided long-term forecasts predicted the central bank would tighten monetary policy by the end of 2018, while only two predicted further rate cuts.
In March the central bank said its key policy rate would most likely remain close to the current level for the next few years, but added there was a slightly higher probability of a cut than a hike in the year ahead.
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