Norges Bank Stands Firm on Rates with Potential March Easing: Analysts Eye 2025 for Cuts

Norway's central bank, Norges Bank, held its policy interest rate at a 16-year high of 4.50%. Analysts expect rate cuts to begin in March 2025. Economic resilience and subdued inflation pressures contribute to this decision. The bank remains cautious amid global uncertainties and potential trade war impacts.

Norges Bank, the central bank of Norway, has maintained its interest rate at a 16-year peak of 4.50%, in line with expectations from analysts polled by Reuters. The bank anticipates starting to lower borrowing costs in March 2025, as economic conditions and inflationary pressures evolve.

Despite the current high rates, Norway's economy has shown resilience, buoyed by increased business investments and government spending. However, the bank remains vigilant to global uncertainties, including potential risks of an intensified trade war between the US and China that could impact international trade dynamics.

This decision contrasts with other Western central banks, many of which have already begun rate cuts as they manage slowing growth and easing inflation. Norges Bank's cautious stance underscores both optimistic national economic indicators and a watchful eye on international economic challenges.

(With inputs from agencies.)