Norway's Interest Rates Hold Steady at 16-Year Peak

Norway's central bank maintained its interest rate at 4.50%, the highest in 16 years, affirming it would remain unchanged until year's end. The bank aims to control inflation and expects no rate change until the end of 2024, with potential declines starting in early 2025.

In a move widely anticipated by analysts, Norway's central bank decided on Thursday to keep its policy interest rate unchanged at a 16-year high of 4.50%.

The bank emphasized the necessity of maintaining restrictive monetary policy to achieve inflation targets, citing no material changes in the economic outlook since September's forecast, which projected rate reductions in early 2025.

Divergent currency performance was observed as the Norwegian crown weakened against the euro following the announcement, marking a shift to a rate of 11.83 from 11.81.

(With inputs from agencies.)