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2025-12-18 17:40:05
[The Norwegian Central Bank Keeps Interest Rates at 4%, No Rush to Cut Rates] ⑴ The Norwegian Central Bank (NZB) kept its key policy rate unchanged at 4% for the second consecutive year in December 2025, in line with market expectations, and stated that it was in no hurry to cut rates. ⑵ The bank emphasized that given inflation remains above target and underlying inflation has been near 3% for some time, restrictive monetary policy remains necessary. ⑶ Policymakers also acknowledged that its tightening cycle in recent years has helped cool the Norwegian economy and curb inflation. ⑷ Despite continued uncertainty about the outlook, the bank reiterated that if economic developments broadly meet expectations, the policy rate could be further reduced in the coming year. ⑸ Interest rate forecasts are largely unchanged from the September report, with one to two rate cuts expected in 2026, and the policy rate gradually falling to slightly above 3% by the end of 2028.
