Financial News: Norway Central Bank Holds Rate; Set To Loosen

Norway Central Bank Holds Rate; Set To Loosen Policy In March

01/23/2025 - 05:20:00 (RTTNews)

(RTTNews) - Norway's central bank left its key interest rate unchanged as widely expected on Thursday and reaffirmed that the rate will likely be reduced in March as rapid rise in business costs could stoke inflation ahead.

The Monetary Policy and Financial Stability Committee of Norges Bank decided to hold the policy rate unchanged at 4.5 percent.

Norway's policy rate has been held at 4.5 percent since December 2023.

The committee assessed that a restrictive monetary policy is still needed to stabilize inflation around target, but that the time to begin easing monetary policy is soon approaching.

Governor Ida Wolden Bache said, "The policy rate will likely be reduced in March." This would be the first reduction since May 2020.

The governor said inflation has moved closer to target but the rapid rise in business costs is likely to contribute to stoking inflation ahead.

Further, the committee observed that the implications of higher trade tariffs on price prospects in Norway are uncertain.

Capital Economics' economist Jack Allen-Reynolds said the bank is likely to loosen monetary policy a little more quickly than its latest projections imply.

The path of inflation will allow the Norges Bank to move a bit more quickly, cutting by 25 basis points once per quarter until the policy rate reaches 3 percent in the middle of 2026, the economist added.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

New Zealand Q4 Retail Sales Volume Climbs 0.9% (36 min(s), 13 sec(s) ago)
(RTTNews) - The total volume of overall retail sales in New Zealand was up a seasonally adjusted 0 ...Full Story»

New Zealand Retail Sales Data Due On Monday (48 min(s), 13 sec(s) ago)
(RTTNews) - New Zealand will on Monday release Q4 numbers for retail sales, highlighting a light d ...Full Story»

U.K. Private Sector Activity Growth Slows In February (19 min(s), 13 sec(s) ago)
(RTTNews) - The British private sector grew at its slowest pace in two months as services continue ...Full Story»

U.S. Consumer Sentiment Plunges To Lowest Level Since November 2023 (49 min(s), 13 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in ...Full Story»

U.S. Existing Home Sales Pull Back Sharply In January (35 min(s), 13 sec(s) ago)
(RTTNews) - Existing home sales pulled back sharply in the month of January, according to a report ...Full Story»

UK Budget Logs Surplus In January (54 min(s), 13 sec(s) ago)
(RTTNews) - The UK budget logged a record surplus for the month of January on self-assessed taxes ...Full Story»

Eurozone Private Sector Expands In February (16 min(s), 13 sec(s) ago)
(RTTNews) - The euro area private sector managed to grow for the second straight month in February ...Full Story»

Mexico Q4 GDP Growth Eases More Than Estimated (48 min(s), 13 sec(s) ago)
(RTTNews) - Mexico's economic growth eased slightly more than initially estimated in the fourt ...Full Story»