MNI NORGES BANK WATCH: Policy Held, No Change Seen In December
MNI (LONDON) - NorgesBank left its policy rate on hold at 4.5% at its November meeting and reaffirmed September guidance that the rate was likely to remain unchanged through to the end of the year before it was "gradually reduced from 2025 Q1."
In its policy update, Norges Bank noted that inflation had come in a little lower than it had projected and that economic growth had been soft so far this year.
The currency remains a wildcard, however, and tilted against easing. Norges Bank noted that the krone has depreciated since September and was slightly weaker than the central bank had assumed.
Overall, the outlook for the Norwegian economy had not changed materially since September and policy needed to remain restrictive, it said.
Norges Bank has yet to start its easing cycle, having left the policy rate on hold since December 2023. The December forecast round will give it the chance to reassess where policy is heading.