Norges Bank Interest Rate Decision 4.00% vs. Exp. 4.00% (Prev. 4.00%); "... if the economy evolves broadly as currently envisaged, the policy rate will be reduced further in the course of the year."

• The Committee judges that a restrictive monetary policy is still needed. Inflation is still too high. If the policy rate is lowered too quickly, inflation could remain above target for too long. On the other hand, an overly tight monetary policy stance could restrain the economy more than needed to bring inflation down to target.
• The geopolitical situation is causing uncertainty, but the Committee's current assessment is that the interest rate outlook has not changed materially since December.
• If growth in business costs remains elevated for longer, or the krone proves weaker than projected, inflation could remain elevated for longer than projected in December.

Governor Bache

• “We are not in a hurry to reduce the policy rate further. Inflation is still too high. Inflation excluding energy prices has been close to 3 percent since autumn 2024”
• “The current geopolitical situation is tense and is causing uncertainty, including about the economic outlook”