Norway Central Bank Holds Firm at 16-Year High Interest Rate of 4.5%
Norway's central bank maintained its policy interest rate at a 16-year high of 4.5%, postponing a rate cut until 2025 due to persistent inflation and a weak currency. Norges Bank Governor Ida Wolden Bache noted the rate would remain at 4.5% through the end of the year.
![Norway Central Bank Holds Firm at 16-Year High Interest Rate of 4.5%](https://devdiscourse.blob.core.windows.net/aiimagegallery/20_06_2024_08_15_04_5837537.png)
Norway's central bank kept its key policy interest rate on hold at a 16-year high of 4.50% on Thursday, as unanimously expected by analysts, and postponed a rate cut until 2025 from a previous plan to reduce the cost of borrowing in September this year.
"If the economy evolves as currently envisaged, the policy rate will continue to lie at 4.5% to the end of the year, before gradually being reduced," Norges Bank Governor Ida Wolden Bache said in a statement. The Norwegian crown strengthened to 11.29 against the euro at 0810 GMT, from 11.35 just before the announcement.
Norges Bank had last month said a rate cut could be delayed
beyond its previous prediction of a September
easing, but had declined to give a specific forecast amid persistent inflation and a weak Norwegian currency. Analysts were divided ahead of Thursday's announcement over when the central bank could start to ease, with forecasts ranging from the third quarter of this year until the first quarter of 2025.
Norges Bank now expects core consumer prices to rise by 4.0% this year, down from 4.1% seen in March. Core inflation stood at 4.1% year-on-year in May
, down from a record 7.0% in mid-2023 but still exceeding the central bank's goal of 2.0%.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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