Norway's Central Bank Raises Policy Rate by 25 Basis Points to 4.5% as Expected

【Norway's Central Bank Raises Policy Rate by 25 Basis Points to 4.5% as Expected】

⑴ Norway's central bank raised its policy rate by 25 basis points to 4.5% in September 2026, in line with market expectations, as policymakers stepped up efforts to curb inflation.

⑵ August CPI inflation rose to 3.3%, the highest in four months, with underlying inflation also climbing to 3%.

⑶ Ongoing conflict between the U.S. and Iran clouded the price outlook, with rising oil and natural gas prices, along with increases in various other raw material costs.

⑷ The central bank signaled that the policy rate may need to remain elevated for some time, and stated it stands ready to tighten further if necessary to bring inflation back to the 2% target within a reasonable timeframe.

⑸ Meanwhile, economic activity has largely grown as expected, employment continues to rise, and the unemployment rate has remained broadly unchanged in recent months.

⑹ Additionally, capacity utilization appears to have declined slightly compared to earlier estimates from June.