UPDATE 2-Norway's central bank keeps rates on hold, repeats plan for Q1 hike
* Keeps key interest rate on hold at 0.75 pct as expected
* No substantial change in outlook
* Economist: sees next hike in March 2019
(Adds economist, detail)
By Camilla Knudsen
OSLO, Oct 25 (Reuters) - Norway's central bank kept interestrates on hold at 0.75 percent on Thursday, as expected, andrepeated an outlook for gradual hikes from the first quarternext year amid faster economic growth and higher inflation.
Norges Bank hiked rates for the first time in seven years inSeptember and said rates would most likely rise further in thefirst quarter next year.
"Economic growth has been a little lower and inflationsomewhat higher than projected, but the outlook and the balanceof risks do not appear to have changed substantially since theSeptember report," the bank said in a statement.
Economic developments in Norway's trading partners have alsobeen broadly as projected, the bank said, while adding there wasstill uncertainty surrounding "the impact of higher tradebarriers on the global economy".
DNB Markets economist Kyrre Aamdal said: "This was just asexpected and supports the outlook for a rate hike in the firstquarter next year, most likely in March."
Norway's currency, the crown, strengthened slightly afterthe announcement, trading at 9.5005 against the euro at 0833 GMTfrom 9.5191 earlier.
The bank's decision was unanimous and as expected byeconomists polled by Reuters. On Wednesday, the Swedish central bank kept rates on holdand reiterated plans for a hike in either December or February.
(Editing by Terje Solsvik and Robin Pomeroy)
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