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2025-12-18 17:04:11
[Policy Remains Unchanged, Hawkish Sentiment Remains Strong, Market Nervous Awaits Dovish Shift] ⑴ On Tuesday, the Norwegian central bank announced it would maintain its policy rate at 4%, in line with market expectations. ⑵ The central bank explicitly stated it was in no hurry to lower the policy rate, noting that if rates were lowered too quickly, inflation could remain above target for an extended period. ⑶ The central bank noted uncertainty surrounding the economic outlook, but stated that if the economy develops broadly as currently expected, the policy rate will be gradually lowered over the next year. ⑷ In assessing risks, the Norwegian central bank's Monetary Policy Committee specifically pointed out that the unpredictable international cooperation and trade environment is creating uncertainty for global and Norwegian inflation and growth prospects. ⑸ The Committee judged that maintaining the current interest rate at the current meeting was appropriate, but still expects a cautious normalization of the policy rate over the next few years. ⑹ The central bank stated that its interest rate outlook has remained largely unchanged since the September report, reinforcing its signal of a patient and data-dependent policy stance. (7) This series of statements highlights the central bank’s prudent attitude in dealing with inflation and growth risks. The short-term interest rate path has been anchored, and market expectations for rapid interest rate cuts may be revised.
