Norway’s central bank decided to keep its policy rate unchanged on Thursday and suggested that it is not rushing to reduce rates further.
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 2025 was the first in five years.
“We are not in a hurry to reduce the policy rate further,” Governor Ida Wolden Bache said. “The job of tackling inflation has not been fully completed, and if the policy rate is lowered too quickly, inflation could remain above target for too long,” the governor added.
“On the other hand, we do not want to restrain the economy more than needed,” said Bache.
The interest rate forecast presented in December was consistent with one to two rate reductions in the course of this year.
Although the geopolitical situation is causing uncertainty, the current assessment of the committee is that the interest rate outlook has not changed materially since December.
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