Norges Bank lifts the policy rate to 4.50 per cent
Norges Bank raised its policy rate from 4.25 per cent to 4.50 per cent at the 23 September meeting and left the door open to a further rise. Governor Ida Wolden Bache said inflation has stayed above the 2 per cent target for several years. RTE reported the same 25 basis point move to 4.5% and said the bank may hike again.
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The rate rose to 4.50 percent
Norges Bank's Monetary Policy and Financial Stability Committee raised the policy rate from 4.25 per cent to 4.50 per cent at its meeting on 23 September. Governor Ida Wolden Bache said inflation has been above the 2 per cent target for several years. The committee said the rate stays elevated for a time and that it is prepared to raise the rate further if the inflation outlook warrants it. RTE reported that Norway's central bank raised its policy rate by 25 basis points to 4.5% and said it may hike again to contain inflation.[1], [2]
Inflation is forecast to reach 2 percent in 2029
The new forecast keeps the rate elevated somewhat longer than the June forecast. On that path, inflation slows from 2027 and moves to 2 per cent in 2029. Capacity utilisation is slightly below a normal level. The next decision is on 5 November. RTE added that a narrow majority of analysts in a Reuters poll had expected the rise. The official text does not say the November meeting has already been decided.[1], [2]
The bank left another rise open
The Norges Bank release and the RTE report describe one decision: the policy rate is now 4.50 per cent, and the bank has said it may hike again. The release sets the forecast path through 2029 and names 5 November as the next decision. RTE records that the move matched a narrow majority of a Reuters poll and that the bank linked a further hike to containing inflation. The two pages do not announce a second rise. The committee raised the policy rate from 4.25 per cent to 4.50 per cent on 23 September. Governor Ida Wolden Bache said inflation has stayed above the 2 per cent target for several years. The forecast keeps the rate elevated longer than the June path, with inflation slowing from 2027 and reaching 2 per cent in 2029. Capacity utilisation is slightly below normal. The next decision is on 5 November. RTE reported a 25 basis point rise to 4.5% and said the bank may hike again, matching a narrow majority of a Reuters poll.[1], [2]
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