Norwegian Central Bank Maintains Steady Rate at 16-Year High

Norway's central bank has kept its policy interest rate at a 16-year high of 4.50%, aligning with analyst expectations. The bank indicated that it will maintain this rate until the end of 2024, citing an unchanged economic outlook. Meanwhile, the Norwegian crown slightly weakened against the euro.

The Norges Bank has decided to maintain its policy interest rate at 4.50%, marking a 16-year high, as anticipated by market analysts. This decision aligns with expectations from a recent Reuters poll.

Governor Ida Wolden Bache reaffirmed that the bank's outlook for the Norwegian economy remains steady with no significant changes since September, leading to the projection that the policy rate will stay at its current level until the conclusion of 2024. A decline in rates is expected in early 2025.

Following the announcement, the Norwegian crown experienced a slight decrease, weakening from 11.81 to 11.83 against the euro.

(With inputs from agencies.)