Norway Interest Rate

The Norges Bank kept its key policy rate unchanged at 4.5% during its December 2024 meeting, in line with market expectations, but signalled rates will most likely be reduced in March 2025. “The Committee judges that a restrictive monetary policy is still needed to stabilise inflation around target, but that the time to begin easing monetary policy is soon approaching,” says Governor Ida Wolden Bache. Policymakers have kept the interest rate at sixteen-year highs of 4.5% since December 2023, which has contributed to cooling down the Norwegian economy and to dampening inflation. Also, unemployment has edged up from a low level and inflation has fallen markedly from the peak, but the rapid rise in business costs is expected to restrain further disinflation.