Norway's Central Bank Holds Rates Steady Amid Economic Forecasts

Norway's central bank kept its key interest rate at 4.50%, aligning with analysts' expectations. The bank's Governor, Ida Wolden Bache, confirmed plans to reduce the rate starting March. Economists predict Norway's monetary policy will adjust in line with other Western central banks, which cut rates in 2024.

Norway's central bank has held its key policy interest rate steady at a significant 17-year peak of 4.50%, a move anticipated by analysts. This decision comes as part of a strategy to commence lowering borrowing costs in March next year.

Economists anticipate that the country's monetary policy will realign with trends seen in other Western central banks, many of which began reducing their rates in 2024 due to a slowdown in economic growth and reduced inflationary pressures. 'The policy rate will likely be reduced in March,' stated Norges Bank Governor Ida Wolden Bache in a recent statement.

Furthermore, the central bank indicated plans last month to execute three rate cuts throughout 2025, projecting a reduction to 3.75% by the end of the year. An updated forecast is expected in March.