Norway’s central bank retained its key interest rate on Thursday and hinted at further reduction in the course of next year if the economy evolves as estimated.
The Monetary Policy and Financial Stability Committee of Norges Bank maintained its policy rate at 4.0 percent.
The bank had reduced the rate by 25 basis points each in September and June. The reduction in June was the first in five years.
“If the economy evolves broadly as currently envisaged, the policy rate will be reduced further in the course of the coming year,” the bank said in a statement.
The committee assessed that tackling high inflation has not been fully completed and restrictive monetary policy is still needed.
Governor Ida Wolden Bache said, “We are not in a hurry to reduce the policy rate.” “The forecast we are presenting today is consistent with 1-2 rate cuts next year and a further reduction to somewhat above 3 percent towards the end of 2028,” added Bache.
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