In opening remarks at a press conference, Norges Bank Governor Ida Wolden Bache presented the Monetary Policy and Financial Stability Committee’s decision to raise the policy rate by 0.25 percentage point to 4.5%. The bank expects to keep the rate near this level for some time, longer than projected in June, and is prepared to raise it further if needed to return inflation to the 2% target within a reasonable period. Consumer price inflation was 3.3%, while inflation adjusted for tax changes and excluding energy was 3.0%. Although underlying inflation eased more than expected over the summer, high wage growth and rising energy and commodity prices continue to support price pressures. A stronger krone should provide some offset, while higher international interest rates also point toward higher domestic rates. Norges Bank projects inflation to fall from 2027 and reach 2% in 2029, with the economy cooling further and registered unemployment rising modestly to slightly above prepandemic levels.
2026-09-24Norges Bank
Norges Bank raises policy rate by 0.25 percentage point to 4.5%, signals longer period of tight policy
Norges Bank raised its policy rate by 0.25 percentage point to 4.5% and expects to keep it near that level for longer than previously projected. It may tighten further if needed, with inflation forecast to return to the 2% target in 2029.