Norway skyline at night

Norway Monetary Policy May 2024

Norway: Norges Banks holds fire in May

At its meeting on 2 May, the Executive Board of Norges Bank unanimously decided to keep the policy rate unchanged at a 16-year high of 4.50%. The hold had been priced in by markets.

The decision to hold was primarily influenced by inflation remaining markedly above the target despite slowing down. Additionally, while inflation has been slightly lower than projected since March’s meeting, economic activity has overshot Norges Bank’s projections. Moreover, wage growth could be higher than initially projected, according to the Bank, which, coupled with a weaker krone, risks further complicating the inflation outlook.

Norges Bank’s forward guidance indicated that the policy rate is likely to remain at the current level “for some time ahead”. This stance is based on the assessment that the current policy rate is adequate to guide inflation to the target “within a reasonable time horizon”. However, the Bank added that it is prepared to adjust the policy rate if necessary. All of our panelists see the loosening cycle beginning this year, with the majority penciling in the first rate cut in Q4 and a minority in Q3. The next policy meeting is scheduled for 19 June.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest