Key Points

• Norges Bank keeps policy interest rate steady at 4.0%
• Rate cuts expected “in the course of the coming year”
• Inflation still exceeds 2% target despite easing
• Norwegian crown strengthens slightly after announcement

---

OSLO, Nov 6 (Reuters) — Norway’s central bank, Norges Bank, held its benchmark interest rate at 4.0% on Thursday, in line with analysts’ expectations, as it continued efforts to rein in inflation. The bank also reiterated its outlook for a potential rate cut sometime in 2026.

“The job of tackling inflation has not been fully completed, and we are not in a hurry to reduce the policy rate,” said Governor Ida Wolden Bache.

The announcement had an immediate but modest impact on the currency market, with the Norwegian crown (NOK) strengthening slightly to 11.71 against the euro following the decision.

---

Inflation Still Above Target

Norway’s core inflation eased slightly in September to 3.0% year-over-year, down from 3.1% in August, according to Statistics Norway. However, inflation remains above the bank’s official 2.0% target, a key reason policymakers have so far resisted deeper or faster rate cuts.

All 27 economists polled by Reuters between Oct. 30 and Nov. 3 had correctly forecast no change in the interest rate during this monetary policy meeting.

“The outlook is uncertain, but if the economy evolves broadly as currently envisaged, the policy rate will be reduced further in the course of the coming year,” Norges Bank stated.

The next rate path update is expected in December.

---

Recent Moves and Global Context

Norges Bank began its easing cycle in June 2025, cutting rates again in September, signaling a slower pace of one rate cut per year over the next three years. This was a notable shift from its previously faster easing trajectory.

Globally, central banks are taking varied approaches:

• The U.S. Federal Reserve cut rates by 25 basis points last week
• The European Central Bank (ECB) held rates steady
• Sweden’s central bank, a key regional counterpart, also left rates unchanged at 1.75% on Wednesday