Norway Holds Firm on Interest Rate Amid Global Cuts

Norway's central bank maintained its interest rate at 4.50%, aligning with analysts' expectations. This contrasts with Western banks like the ECB and Fed, which have started to cut rates. Norges Bank expects to maintain this rate until the end of 2024, aiming to curb inflation.

Norway's central bank has chosen to maintain its interest rate at 4.50%, marking a 16-year high, as predicted by analysts. This decision contrasts with other Western central banks, including the ECB, Fed, and Bank of England, which are starting to lower rates.

Despite a backdrop of rate cuts elsewhere, Norges Bank remains firm. The Swedish central bank cut rates by 50 basis points, with further reductions possible. However, Norges Bank plans to maintain its current rate until the end of 2024, as indicated by Governor Ida Wolden Bache's statement.

The Norwegian economy has shown little material change since September, with forecasts predicting a rate decline in early 2025. Slightly lower-than-expected inflation and a weaker currency have influenced these decisions, as the country's core inflation rate remains above target.

(With inputs from agencies.)