Norway Interest Rate

The Norges Bank decided to keep the policy rate at 4.5% on January 22, in line with market expectations, but Governor Ida Wolden Bache indicated that a rate cut is likely in March. Since autumn 2021, the Bank has raised rates to combat high inflation, which has helped cool the Norwegian economy and reduce inflation. Unemployment has risen slightly, but inflation is approaching target levels. While inflation is lower than expected, rising business costs may fuel it again. Fewer rate cuts are anticipated abroad, so Norges Bank’s restrictive policy remains in place to stabilize inflation, though easing is expected soon. Uncertainty about global and Norwegian economies, including the risk of higher tariffs, remains a concern.