MNI BRIEF: Norges Bank Holds, Rate Cut Likely In March
MNI (LONDON) - Norges Bank left its key policy rate unchanged in Jaunary, having now held at 4.5% since December 2023. Policymakers stuck guidance that the first cut this cycle is likely to come in March. (see MNI NORGES WATCH: Seen On Hold, Any Twist Likely Hawkish )
Norges Bank's assessment was that its December forecasts were largely holding good with "underlying inflation and unemployment have been roughly as projected" and the forecasts will be updated alongside the March decision. The poliicy assessment referred to the uncertainty over global trade due to the Trump administration in the US, saying that "increased tariffs will likely dampen growth globally, but the consequences for the price outlook here at home are uncertain."
The krone has been weaker than expected and Norges Bank noted fewer cuts are priced in for both Norway and foreign countries without providing any fresh steer on where its policy rate could settle.