Norwegian Central Bank Holds Steady: Rate Cuts on Horizon

Norway's central bank kept its key interest rate at 4.50%, a 16-year high, while indicating a future cut in rates starting March. This decision aligns with analyst expectations and aims to stabilize inflation. The announcement affected the Norwegian crown, slightly weakening it against the euro.

Norway's central bank maintained its policy interest rate at a 16-year high of 4.50% on Thursday, following unanimous predictions from analysts in a Reuters survey. The bank announced plans to reduce borrowing costs come March next year.

Norges Bank Governor Ida Wolden Bache stated that a restrictive monetary policy remains necessary to stabilize inflation, but the time to ease is approaching. According to the committee's current outlook, a rate reduction is likely by March 2025.

In response to the announcement, the Norwegian crown saw a slight decline, weakening to 11.78 against the euro from 11.76 prior to the news.

(With inputs from agencies.)