Norges Bank’s Monetary Policy and Financial Stability Committee held the policy rate at 4.5% at its Nov. 4 meeting, reiterating that rates will likely need to remain high for some time. Inflation remains above target, requiring continued restrictive monetary policy. The committee remains prepared to raise rates if the inflation outlook warrants it. Annual consumer price inflation was 3.4% in September, while inflation adjusted for tax changes and excluding energy products was 3.0%. Overall inflation was broadly in line with projections, but price growth for domestically produced goods and services exceeded expectations. Strong increases in business costs over recent years are likely to sustain inflationary pressure, while prolonged high inflation risks making it more persistent. Capacity utilisation has declined to slightly below normal, although registered unemployment was slightly lower than projected and preliminary figures indicated stronger employment growth than expected. The committee judged that the economic outlook had not changed materially since September, when it raised the policy rate to its current level, and emphasised avoiding a greater slowdown than necessary. No new forecasts were prepared for this meeting. Updated projections will accompany the next rate decision on Dec. 17, 2026.
Norges Bank holds policy rate at 4.5% and reiterates readiness for further increases
Norges Bank kept its policy rate at 4.5% and repeated that it will likely need to stay high for some time. Inflation remains above target, with domestic price pressures stronger than forecast, leaving the committee prepared to raise rates if necessary. Updated forecasts will accompany the next rate decision on Dec. 17, 2026.