Norges Bank’s Monetary Policy and Financial Stability Committee raised the policy rate by 25 basis points to 4.50% in September, judging that a somewhat tighter stance was needed to return inflation to target within a reasonable time horizon. The rate had been held at 4% from November through March, raised by 25 basis points to 4.25% in May, held in June and August, and raised by a further 25 basis points in September. Effective 25 September, the overnight lending rate will be 5.50% and the reserve rate 3.50%. Inflation remains markedly above the 2% target, and although underlying inflation has slowed more than projected, the medium-term outlook has not changed materially, with inflation forecast to reach target in 2029. Mainland activity has increased broadly as expected, employment has risen, and capacity utilisation appears slightly below normal, with the economy expected to cool further. A stronger krone should dampen imported goods inflation, while the Middle East conflict, higher commodity prices and rising market interest rates continue to create uncertainty. Norges Bank expects to keep the policy rate elevated for a time before a modest decline and remains prepared to raise it further if the inflation outlook warrants.
2026-09-24Norges Bank
Norges Bank Raises Policy Rate by 25 Basis Points to 4.50%
Norges Bank’s Monetary Policy and Financial Stability Committee raised the policy rate by 25 basis points to 4.50%, citing the need for tighter policy to return inflation to the 2% target, forecast for 2029. The Committee expects to keep rates elevated before a modest decline and remains prepared to tighten further if warranted.