In September 2018, Norges Bank raised the policy rate for the first time in over seven years. The rate was raised further in March of this year, and is now 1 percent. Gradual interest rate normalisation means that the Norwegian economy is faring well. The rate hikes were signalled well in advance. Norges Bank places substantial emphasis on clear and effective communication of policy rate prospects. Our main channel of communication is the Monetary Policy Report, which contains a thorough assessment of information about developments in the Norwegian economy and the background for the monetary policy decision. In order to reach a broader audience, we communicate through different channels. We give speeches and presentations throughout the country where we address local business leaders, the financial industry or university and college students. In 2018, we launched a new product on our website – Pengepolitikken kort fortalt [Monetary policy in brief].1 This product is aimed in particular at those looking for background on the interest rate decision in a more simplified and relatable version. The message, of course, is the same as in our Monetary Policy Report. Chart: GDP for Norway’s trading partners Let me return to economic developments. Norway’s trading partners have experienced a broad economic upturn in recent years. This has led to a considerable improvement in labour market conditions, and wage growth has gradually begun to rise. In 2018, growth among trading partners slowed somewhat, particularly in Europe. Heightened uncertainty had likely contributed to dampening growth.
Among other things, there was considerable uncertainty surrounding trade tensions between the US and China and the UK’s withdrawal from the EU. Despite somewhat lower growth, unemployment continued to edge down in many countries. US unemployment is now the lowest in 50 years. Consumer price 1/3  BIS central bankers' speeches  inflation among trading partners picked up in 2018, mainly owing to higher energy prices. Underlying inflation was fairly stable among our main trading partners. Chart: International interest rates Official policy rates in the US, UK and Sweden were raised in 2018. The US federal funds rate has been raised in several steps in recent years, and the target range is now 2.25 to 2.5 percent. Nevertheless, the global interest rate level remains low, and market expectations indicate a low level in the years ahead. In the euro area, there are prospects that the ECB deposit facility rate will be negative for some time to come. Chart: Oil prices and the krone exchange rate The tailwind from the rebound in oil prices has provided a considerable boost to the Norwegian economy in recent years. Oil prices have more than doubled since the low in early 2016. In 2018, oil prices were highly volatile in periods, primarily reflecting supply-side conditions. Towards the end of 2018, uncertainty about global economic prospects had a dampening impact on oil prices. After rising to above USD 85 per barrel through autumn, oil prices fell to below USD 55 per barrel at year-end. Prices have edged up again since then.