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2025-09-18 20:46:06
[Norway's Central Bank May Slow Down on Rate Cuts, Is the Tightening Road Yet to End?] ⑴ Economists at Handelsbanken in Sweden indicate that the Norwegian Central Bank may not cut its key interest rate as sharply as previously hinted. ⑵ The Central Bank's latest interest rate path suggests fewer rate cuts in the future. ⑶ According to the revised forecast, the next rate cut may be postponed until September 2026, followed by cuts in the spring of 2027 and mid-2028. ⑷ The main reason behind this adjustment is stronger domestic demand in Norway and rising wage and price pressures. ⑸ Handelsbanken expects that the Central Bank will likely continue to raise its interest rate path while maintaining its forecast for the terminal rate at 3.5%, with the policy rate unlikely to fall below this level. ⑹ The terminal rate is expected to fall from the current 4% to around 3.25%.
