OSLO, March 15 (Xinhua) -- Norway's central bank said on Thursday its executive board decided to maintain the key policy rate unchanged at 0.50 percent, but the rate will most likely be raised after the summer.

Economic growth appears to be somewhat stronger than expected and the output gap for Norway is closing, as the upturn abroad and in Norway is continuing, Norges Bank said in a statement.

Underlying inflation is low, but rising capacity utilization will probably push up price and wage inflation further out, it said.

The outlook for the Norwegian economy suggests that it will soon be appropriate to raise the key policy rate, the bank said, adding that the uncertainty surrounding the effects of a higher interest rate suggests a cautious approach.

"The Executive Board's current assessment of the outlook and balance of risks suggests that the key policy rate will most likely be raised after summer 2018," Oystein Olsen, governor of Norges Bank, was quoted as saying.

In Norway, the key policy rate, also called the sight deposit rate, is the interest rate on bank deposits up to a quota in Norges Bank. Changes in Norges Bank's key policy rate will normally have a strong impact on short-term money market rates and on banks' deposit and lending rates.

The Norwegian central bank's next rate decision will be announced on May 3.