Norges Bank’s Monetary Policy and Financial Stability Committee raised the policy rate by 25 basis points to 4.50%, concluding that tighter monetary policy is needed to return inflation to the 2% target within a reasonable period. The committee expects to keep the rate near its current level for some time and is prepared to raise it further if the inflation outlook warrants. Its revised forecast keeps rates elevated for longer than projected in June, with inflation expected to fall from 2027 and reach 2% in 2029. Although underlying inflation has eased more than expected, the medium-term outlook has not changed materially and headline inflation remains clearly above target. Persistent business cost pressures and higher commodity prices could prolong inflation, while a stronger krone and slower wage growth should provide some restraint. Mainland economic activity has developed broadly as expected, but capacity utilization is declining and appears slightly below normal. Norges Bank expects the economy to cool further and registered unemployment to rise somewhat above pre-pandemic levels. The next policy rate decision will be published on Nov. 5, 2026.
2026-09-24Norges Bank
Norway’s Norges Bank raises policy rate to 4.50%, signals prolonged hold and possible further increases
Norges Bank raised its policy rate by 25 basis points to 4.50% to bring inflation back to its 2% target. It expects to keep rates elevated for longer than previously projected and could tighten further if inflation persists. Inflation is forecast to reach target in 2029.