Norges Bank’s Monetary Policy and Financial Stability Committee held the policy rate at 4.25%. Inflation has fallen faster than expected, but the committee judged that it remains too high and that restrictive monetary policy is still needed. It said a rate increase may still be necessary because it is too early to conclude that the inflation outlook has changed materially since June. Annual consumer price inflation fell to 3.0% in July, while inflation adjusted for tax changes and excluding energy products was 2.7%. Economic capacity utilization appears close to normal but is declining, unemployment has changed little in recent months, existing home prices fell sharply in July and construction activity remains low. The committee also cited strong growth in business costs and the risk that prolonged inflation could become embedded in household and business expectations. Norges Bank did not prepare new forecasts for this meeting. It will publish updated projections with its next rate decision on Sept. 24, 2026.
Norges Bank2026-08-13
Norges Bank holds policy rate at 4.25%, keeps possible increase on the table
Norges Bank held its policy rate at 4.25% as inflation fell more than expected but remained above target. The committee kept open the possibility of a rate increase and will publish updated forecasts with its Sept. 24, 2026 decision.