Finance
Norway central bank keeps rate on hold in policy reversal
Published by Global Banking & Finance Review®
Posted on March 27, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 27, 2025
1 min readLast updated: January 24, 2026
Norway's central bank maintains a 4.50% interest rate due to rising inflation, delaying a planned rate cut to 2025.
OSLO (Reuters) - Norway's central bank kept interest rates on hold at a 17-year high of 4.50% on Thursday, in line with most forecasts, as an unexpected resurgence of inflation led policymakers to postpone their previously stated plan for a cut.
Norges Bank had said in January its policy rate would "likely be reduced" in March by 25 basis points and the governor last month stated the central bank was "approaching the time" for an initial cut.
But a majority of analysts polled by Reuters had expected the central bank to reverse course, and thus keep rates on hold, pointing to a jump in February core inflation to 3.4% year-on-year from 2.8% in January, well above the 2% target.
"The committee's current assessment of the outlook implies that the policy rate will most likely be reduced in the course of 2025," Norges Bank said in a statement on Thursday.
(Reporting by Gwladys Fouche, editing by Terje Solsvik)
The article discusses Norway's central bank decision to hold interest rates at 4.50% due to rising inflation.
Norges Bank held the rates due to an unexpected rise in core inflation to 3.4% in February.
The rate cut is now expected to occur in 2025, according to Norges Bank's statement.
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