Norway's Central Bank Maintains High Interest Rate, Signals Future Cuts

Norway's central bank maintained its policy interest rate at a 16-year high of 4.50% and indicated plans to cut borrowing costs in early 2024. While most economists anticipated a rate cut in December, a few foresee it happening as late as March 2025.

Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected. The bank also announced plans to start cutting borrowing costs in the first quarter of next year.

Economists have been divided over when Norges Bank may begin to ease its policy. A majority of those polled by Reuters predicted a cut in December of this year, while a minority pointed to March 2025 as the most probable timing.

(With inputs from agencies.)