Norges Bank raised its policy rate by 25bp to 4.5% and adjusted its policy rate path higher, pointing to a 40% chance of another increase over the next six months. The central bank\u2019s guidance indicates no rate cuts before 2028, suggesting a prolonged period of restrictive settings even as the near-term trajectory remains data-dependent.<\/p>\n\n
In its updated projections, Norges Bank expects mainland growth to stay around 1%, slightly below potential, while unemployment is forecast to edge up. <\/p>\n\n
The bank judges the inflation outlook to be broadly unchanged since June, despite lower inflation over the summer and a somewhat stronger NOK, and it cites stronger external impulses such as energy and commodity prices.<\/p>\n\n\n\n