In their decision in Oslo Published Thursday, officials concerned about the weak krone kept the rate Interest At 4.5 percent, its highest level since December 2008, they said there was little chance of it easing before the first quarter of 2025.
Following the reserve decision Federal By starting to ease monetary policy on Wednesday with a half-percentage-point interest rate cut, the Norges Bank’s steadfast stance contrasted with peers who are easing restrictions on their economies as the shock of the coronavirus pandemic fades. Inflation Global.
The Central Bank said in a statement that the committee believes that restrictive monetary policy remains necessary to restore Inflation to the target within a reasonable time horizon.
The governorate said norwegian central bank“The policy rate is likely to remain at 4.5 percent through the end of the year,” Ida Waldenbachi said in a statement on Thursday. “We believe that the policy rate will need to be kept at its current level for some time to come but that the time for easing monetary policy is approaching.”
Experts were divided Economy Regarding when the Norwegian central bank will start easing monetary policy, the majority of those polled by Reuters expected a rate cut in December this year, while a minority pointed to March 2025 as the most likely time.
Expectations that the Norwegian central bank will be slower than its peers in normalizing policy boosted the krone, which rose about 1 percent to its strongest level against the euro in nearly three weeks.
but The crown It is the worst performing G10 currency this year, down more than 3 percent against the dollar and about 4 percent against the euro, due to a sharp drop in demand for riskier assets in August along with lower oil prices.
