Many other countries have been lowering interest rates, but Norway’s central bank has decided to buck the trend once again. Its policy rate was kept at 4.5 percent on Thursday, and probably won’t be cut until early next year because of ongoing price hikes.
“The policy rate will likely be kept at 4.5 percent (until) the end of the year,” stated Norges Bank Governor Ida Wolden Bache after another meeting of the bank’s committee on monetary policy and financial stability. Her goal is to “tackle high inflation,” not just cool it down.
She acknowledged that inflation is lower but still not down to the central bank’s target of just 2 percent. The central bank’s committee also noted that unemployment has “edged up” and that there’s been a “rapid rise” in business costs. Norway’s currency, the krone, also remains unusually weak.
“We believe that there is a need to keep the policy rate at today’s level for a period ahead, but that the time to ease monetary policy is approaching,” Bache said, hinting at a gradual reduction during the first quarter of 2025.
NewsinEnglish.no staff
