NEWS

Norway’s central bank is having a hard time convincing traders it will cut interest rates again as Governor Oeystein Olsen grows more upbeat on the fate of the economy.

Olsen on Thursday kept the benchmark rate unchanged and reiterated his willingness to lower rates again after a December cut. At the same time, the bank is walking back its most dire predictions from the end of last year, when it predicted a more severe slowdown amid plunging oil prices.

“That was a good decision to take out an insurance against a more severe outcome,” Olsen said in an interview, referring to the bank’s stance in December. “Then things went OK from December and throughout the winter and that has continued until now.”