- Norwegian Key Policy Rate Actual 4.50% (Forecast 4.5%, Previous 4.50%)
Norges Bank has kept the policy rate unchanged at 4.5% following the November 6 meeting, with expectations to maintain this rate until the end of 2024, according to Governor Ida Wolden Bache. While previous hikes aimed to curb inflation have cooled the economy and raised unemployment slightly, inflation has declined faster than expected. However, krone depreciation and rising business costs may slow further disinflation. A restrictive monetary policy remains necessary to bring inflation to target, with potential rate reductions anticipated starting in early 2025, depending on future economic developments.
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