Norway holds rates steady

Norway’s central bank (Norges Bank) held its benchmark interest rate steady at 4.50 per cent on Thursday, as analysts had predicted, Reuters reported.

It signalled a single rate cut for the year, contrary to expectations for more.

The bank forecasted that the rate would stay at 4.5 per cent until autumn, with a gradual decline thereafter.

Meanwhile, the Norwegian crown strengthened slightly against the euro after the announcement.

The bank’s forward rate curve for 2024 to 2026 remained mostly unchanged. Norges Bank projected a 25 basis point rate cut in December.

It expressed caution about premature rate cuts due to concerns over inflation and currency weakening.

The bank adjusted its economic growth forecast upward for 2024 but kept it steady for 2025, it also revised core inflation expectations downward for this year.

Meanwhile, the Swiss National Bank announced a 25 basis point rate cut.

The US Federal Reserve affirmed its plan for three rate cuts this year but reduced its expected cuts for 2025.