Norway Interest Rate

The Norges Bank cut its key policy rate by 25bps to 4.25% in its June 2025 meeting after maintaining the 15-year high rate since December of 2023, defying expectations of a hold. The central bank noted that it is expected to deliver more rate cuts this year if the economy develops as it expects, although it stressed that heightened uncertainty prevent it from committing to a path. Policymakers stated that inflation has slowed since the March meeting and that it is appropriate to ease financial conditions and attend economic growth. Still, the Monetary Policy Committee stressed that borrowing costs must remain at a farily restrictive level to prevent a rebound in inflation. The latest set of forecasts penned the policy rate to end the year around 4% and 3% by 2028.