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2025-09-18 16:22:49
[Norwegian Central Bank Cuts Interest Rates by 25 Basis Points in September] ⑴ At its September interest rate meeting, the Norwegian Central Bank announced a 25 basis point cut in its key policy rate to 4.0%, in line with market expectations. The bank also indicated that if the economy develops as expected, it would continue to cut interest rates over the next year. ⑵ This is the second rate cut by the bank in nearly five years, following a brief pause in August. The committee noted that the current policy stance remains tight, cooling the economy and curbing inflation. ⑶ At the same time, rising unemployment has prompted the central bank to believe that interest rate cuts are necessary to support economic growth and mitigate the impact of long-term high borrowing costs. ⑷ The central bank expects the policy rate to gradually fall to around 3% over the next few years, with inflation expected to stabilize around 2% by 2028.
