MNI BRIEF: Norges Bank Holds, Likely To Keep Policy Steady

Norges Bank left its key policy rate unchanged at 4.5% at its March meeting and made clear that it was likely to stay unchanged in coming months, with its rate projection showing the first cut not coming until the autumn at the earliest.(see MNI NORGES WATCH: On Hold In March,Tilt To Earlier Cut Eyed)

The central bank's quaterly rate projection for the near-term was unchanged, with the policy rate shown falling to 4.29% in the fourth quarter, pointing to a single rate cut later this year. The path overall was a touch higher than in the previous forecast round, with the policy rate shown at 3.07% by the end of 2026, up from 2.97%,. and at 2.82% three years ahead.

“The policy rate will likely need to be maintained at the current level for some time ahead," Governor Ida Wolden Bache stated, with the forecasts showing inflation at 4.1% this year, cut from 4.8%, 3.2% in 2025 and at 2.7%, still above target, in 2026.