Interest Rate in Norway
Norway - Interest Rate
Norges Bank meets expectations and pauses tightening cycle in January
At its 18 January meeting, the Executive Board of Norges Bank unanimously voted to pause its tightening cycle and leave the sight deposit rate unchanged at 2.75%. The move, which had been largely priced in by markets, came on the heels of smaller 25 basis point increases in both November and December, following September’s 50 basis point hike.
The decision was driven by the Bank’s assessment that global inflation is already at or close to its peak. Additionally, the Bank noted higher volatility regarding energy prices in 2023. As Norges Bank has raised interest rates considerably in a relatively short period of time, it took a wait-and-see approach in a bid to assess the impact of previous hikes on the economy amid a more uncertain environment.
In terms of forward guidance, Norges Bank hinted it would resume the tightening cycle at its next meeting, scheduled for 22 March. This reinforced the Central Bank’s December statement that it would raise rates in Q1 2023. The Bank noted that activity in the Norwegian economy has remained dynamic and that inflation remained well above the 2.0% target. Additionally, the labor market is still tight.
The majority of our panelists expect a 25 basis point increase at the meeting in March.
Consensus Forecast panelists project the sight deposit rate to end 2023 at 3.02% and 2024 at 2.64%.
Norway - Interest Rate Data
|Policy Interest Rate (%)||0.75||0.50||0.50||0.75||1.50|
5 years of economic forecasts for more than 30 economic indicators.
Norway Interest Rate Chart
Source: Norway Central Bank.
|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
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January 19, 2023
At its 18 January meeting, the Executive Board of Norges Bank unanimously voted to pause its tightening cycle and leave the sight deposit rate unchanged at 2.75%.
January 12, 2023
GDP grew 0.2% over the prior month in seasonally adjusted terms in November, contrasting October’s 0.8% decline.
January 10, 2023
Inflation came in at 5.9% in December, which was down from November’s 6.5%.
January 6, 2023
Industrial production slid 0.9% month on month in seasonally-adjusted terms in November, a smaller contraction when compared with October’s 1.2% decrease.
December 14, 2022
At its 14 December meeting, the Executive Board of Norges Bank unanimously voted to deliver another 25 basis point increase and bring the sight deposit rate to 2.75%—its highest level since January 2009.