Financial News: Norway Cuts Interest Rate By 25 Bps

Norway Cuts Interest Rate By 25 Bps

09/18/2025 - 05:28:00 (RTTNews)

(RTTNews) - Norway's central bank reduced its interest rate for the second time this year and signaled further reduction in the course of the coming year but not as quickly as envisaged before summer.

The Monetary Policy and Financial Stability Committee of Norges Bank cut the policy rate by 25 basis points to 4.0 percent.

The bank had reduced the rate by 25 basis points in June, which was the first cut in five years.

The committee considered holding the policy rate unchanged at this meeting but concluded that a rate cut is now appropriate, the bank said in a statement.

Policymakers observed that a cautious normalization of the policy rate will pave the way for inflation to return to target further out without a substantial increase in unemployment.

The committee said the economic outlook remains uncertain but if the economy evolves broadly as currently projected, the policy rate will be lowered further in the course of the coming year.

"We will probably not reduce the policy rate ahead as quickly as envisaged before summer," Governor Ida Wolden Bache said.

Today's forecast suggested one rate cut per year in the coming three years. The policy rate forecast in this Report declines gradually to somewhat above 3 percent towards the end of 2028.

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