- Norges Bank keeps interest rates unchanged.
- Norges Bank will not rush with rate cuts.
- Inflation is expected to reach the target only in 2028.
- EURNOK is clearly losing after Norges Bank's decision
- Norges Bank keeps interest rates unchanged.
- Norges Bank will not rush with rate cuts.
- Inflation is expected to reach the target only in 2028.
- EURNOK is clearly losing after Norges Bank's decision
As expected, Norges Bank has kept interest rates unchanged. The main rate is currently 4.0%. Norges Bank has slightly adjusted its economic forecasts, although they do not significantly alter the overall picture:
- CPI inflation for 2025 is at 3.1%, in line with the September forecast.
- CPI inflation at 2.7% in 2026, compared to 2.8% in September.
- CPI inflation at 2.4% in 2027 compared to 2.3% in September.
- GDP in 2025 at 1.6% compared to 2.0% in September.
- GDP in 2026 at 1.3% compared to 1.5% in September.
- GDP in 2027 at 1.3%, unchanged from September.
Norges Bank has clearly lowered its economic forecasts and indicates that if the data aligns with the forecasts, it anticipates 1 or 2 rate cuts next year, but there is no rush to implement them quickly. Norges Bank itself expects inflation to reach the 2% target only by 2028, so there is no hurry to significantly lower interest rates.
The market gives only a 65% chance of cuts in July next year. The lack of urgency in rate cuts is strengthening the Norwegian krone against the euro. The euro is also losing slightly ahead of the ECB's decision regarding a possible change in the tone of the decision (although interest rates will certainly be maintained, as the market predicts).
EURNOK (D1)
Source: xStation5
BREAKING: BoE cuts interest rates.
EURUSD falls 0.12% ahead of the ECB and CPI
Chart of the day: NZDUSD (18.12.2025)
BREAKING: Riksbank leaves rates unchanged as expected 📄
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
