Norway Interest Rate

The Norges Bank held its key policy rate unchanged at 4.5% in its May 2025 meeting, maintain the rate at the 15-year high for over one year, consistent with market expectations and signals by the central bank. Like other monetary authorities that overlook G10 currencies, the Norges Bank stressed that trade barriers put up by the United States and other major economies raise uncertainty on the global macroeconomic backdrop. The bank's Committee noted that while inflation has slowed from the elevated levels since 2023, it remains above target, and premature rate cuts risk a rebound in price growth amid he uncertain economic scenario. Still, the central bank signaled that it will likely be appropriate to commence its cutting cycle later in the year, albeit the guidance may be pulled should trade wars escalate and trigger shocks to the Norwegian economy.