The Norges Bank is very unlikely to change its policy rate next week, but we think that it will push back the date at which it forecasts raising interest rates to the end of 2019. After all, the mainland economy is expanding at a decent pace, but spare capacity is being eroded only slowly. Consumer price inflation is very weak. And the sharp slowdown in house price inflation this year should allay concerns that the housing market is overheating, thereby leaving room for monetary policy to remain looser for longer.
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