In remarks at the Nov. 5, 2025, interest rate press conference, Norges Bank Gov. Ida Wolden Bache explained the Monetary Policy and Financial Stability Committee’s decision to keep the policy rate at 4.5%. Restrictive monetary policy remained necessary to return inflation to the 2% target within a reasonable period. Rates would probably need to remain elevated for some time, and the committee was prepared to raise them if necessary. The economic outlook had not changed materially since the September rate increase. Consumer price inflation stood at 3.4%, or 3.0% excluding tax changes and energy prices, with domestically produced goods and services recording the fastest price increases. Strong growth in businesses’ wage costs and elevated energy prices were expected to sustain inflation pressure, while a stronger krone would help moderate it. Registered unemployment had changed little at 2.0%, while employment appeared to have risen further. New forecasts were scheduled for the December policy meeting.
Norges Bank governor explains November 2025 rate hold at 4.5% and readiness for further increases
At the Nov. 5, 2025, interest rate press conference, Norges Bank Gov. Ida Wolden Bache outlined the decision to hold the policy rate at 4.5% and the committee’s readiness to raise it if needed. Inflation stood at 3.4%, above the 2% target, while registered unemployment was 2.0%. Persistent wage and energy price pressures underpinned the assessment that monetary policy needed to remain restrictive.