Norway Interest Rates To Remain Unchanged - Norges Bank

(RTTNews) - Norway's interest rates are set to remain unchanged till the end of this year as the outlook for the economy remains uncertain, Norges Bank said Thursday as it held the key interest rate steady for the seventh policy session in a row.

The Monetary Policy and Financial Stability Committee of the Norges Bank decided to keep the policy rate unchanged at 4.5 percent. That was in line with economists' expectations.

The previous change in the policy rate was a quarter-point hike in December last year.

"The policy rate will most likely be kept at 4.5 percent to the end of 2024," Governor Ida Wolden Bache said.

Norwegian central bank rate-setters were of the view that "a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon."

The September monetary policy report had indicated a gradual reduction in the policy rate from the first quarter of 2025.

The central bank observed that the outlook for the Norwegian economy has not changed materially since the previous monetary policy meeting. Policymakers also considered the fact that inflation has slowed faster than expected over the past year and that it was also lower in September than projected. That said, the krone depreciation in recent years and the rapid rise in business costs are likely to restrain further disinflation, the bank pointed out.

Meanwhile, international policy rate expectations have increased, and the krone has been a little weaker than assumed.

"There is uncertainty about future developments in the Norwegian economy," Norges Bank said.

"The Committee will have received more information about developments ahead of its next monetary policy meeting in December, when new forecasts will be presented."

The next rate-setting session is on December 19.