Norges Bank’s Monetary Policy and Financial Stability Committee held the policy rate at 4.25% in August, judging that inflation remains too high despite slowing more than projected and that a restrictive stance is still needed. Over the past year, the central bank cut the rate to 4% in September 2025, held it through March and raised it by 25 basis points in May 2026. Twelve-month consumer price index inflation was 3.0% in July, while inflation adjusted for tax changes and excluding energy products was 2.7%, still above the 2% target. Capacity utilisation appears close to normal but is drifting down, while unemployment has changed little in recent months. The krone is broadly in line with the level assumed in June after weakening earlier in the summer and subsequently appreciating slightly. The Middle East conflict continues to create inflation uncertainty, with oil prices little changed since June and gas prices somewhat higher. Norges Bank said the rate path will depend on economic developments and that a further increase may still be necessary, with new forecasts due in September.
Norges Bank2026-08-13
Norges Bank Holds Policy Rate at 4.25%
Norges Bank held the policy rate at 4.25% in August, citing above-target inflation and the continued need for a restrictive stance. It said a further increase may be necessary depending on economic developments, with new forecasts due in September.