MNI BRIEF: Norges Bank Holds, Says Cut Most Likely March 2025
MNI (LONDON) - Norges Bank has left its policy rate on hold at 4.5%, a move ensuring the bank's policy rate was unchanged throughout 2024.
The Norwegian central bank has stayed out of step with its peers and is yet to start the easing cycle, but the first cut is coming closer. The policy committee saying that the policy rate was most likely to be lowered in March next year. Governor Ida Wolden Bache said that "the time is soon to start lowering interest rates" with inflationary pressures somewhat weaker than previously assumed. (see MNI NORGES WATCH: Focus On Norges Banks' Rate Cut Timing )
Norges Bank's rate path forecast was raised a little but showed a gradual reduction in the policy rate starting in the first quarter of 2025. The policy rate was shown at 4.0% at the end of Q3 next year and dipping a liltle below 3.0% in 2027.