Norges Bank held its policy rate at 4.5% on Nov. 4, maintaining pressure on borrowing costs as inflation stayed above target and the bank left open the possibility of another increase.
The central bank’s Monetary Policy and Financial Stability Committee voted unanimously. The rate takes effect Nov. 6. Norges Bank said another increase remains possible if the inflation outlook warrants it; the statement did not announce or promise a hike.
Norges Bank’s operational target is inflation close to 2% over time. The latest available figures, for September, showed the Consumer Price Index rose 3.4% from a year earlier and 0.5% from August. CPI adjusted for tax changes and excluding energy products rose 3.0% over the year and 0.2% month over month.
The bank said inflation in domestically produced goods and services remained elevated and exceeded the level in its September projection. Imported consumer-goods inflation had slowed and was lower than expected. Norges Bank said rapid business-cost increases in recent years could keep inflation elevated, while a prolonged period above target could make price pressures more persistent. Norges Bank Gov. Ida Wolden Bache said, “Inflation is too high.”
FXStreet reported on Nov. 5 that Nomura expects Norway’s disinflation to proceed gradually. The outlet said the firm sees no rate change in 2026 or 2027, with a cut no earlier than 2028.
Norges Bank published no new policy path with the November decision. Its September projections put inflation at the 2% goal in 2029, while the rate outlook centered on 4.5% initially before moving lower.
The decision follows a Sept. 23 increase from 4.25% to 4.5%. Norges Bank said that move was intended to bring inflation back to its goal over time.
Statistics Norway is scheduled to publish its next inflation update Nov. 10. Norges Bank’s next rate decision, accompanied by new forecasts, is scheduled for Dec. 17.
