Norges Bank cut its policy rate by 25 basis points to 4.25%, marking the start of a cautious normalization process amid declining inflation and a cooling economy. The decision was unanimous, reflecting lower-than-expected inflation and a narrowing output gap, though inflation still remains above target.
The central bank projects further rate cuts through 2025, with the policy rate expected to fall below 4% by year-end and approach 3% by 2028. Despite growing economic uncertainty, Governor Ida Wolden Bache emphasized the Bank’s commitment to bringing inflation back to 2% without tightening the economy more than necessary.
Daily Summary: "Heat" of the NFP Print Cools Market Sentiment β¬οΈ
Three Markets to Watch Next Week (04.09.2026)
π‘Gold drops sharply following strong NFP
BREAKING: NFP with a massive upside; EURUSD dips π¨