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2025-09-15 20:28:02
[Nordic Union Bank: There is no reason for the Norwegian Central Bank to cut interest rates on Thursday] Nordic Union Bank analysts Kjetil Olsen and Sara Midtgaard said that apart from the Norwegian Central Bank’s signal of a rate cut in June, the bank had no basis to lower the key interest rate on Thursday. The Norwegian Central Bank launched its first monetary policy easing in this cycle in June, lowering the key interest rate from 4.5% to 4.25%, and has long been sending signals that it will gradually cut interest rates further. The expectation of a rate cut is based on the premise that "monetary policy is suppressing economic activity", but Nordic Union Bank questioned this premise. The bank pointed out that the Norwegian economy has rebounded sharply after two years of moderate growth. At the same time, the inflation rate is still well above the target level of 2%. The two said: "Although we are extremely uncertain about what actions (Nordic Central Bank policymakers) will take, we believe that they will keep interest rates unchanged."
