Norges Bank Holds Rates at 4.5%, Plans March Cuts

Norway's central bank, Norges Bank, has maintained its policy interest rate at a 17-year high of 4.5%, as expected by analysts. The bank signaled plans to begin cutting rates in March, marking the first reduction since May 2020, with projections indicating a gradual decline to 3.75% by the end of 2025. Governor Ida Wolden Bache highlighted concerns over potential global trade barriers impacting Norway's economic outlook. Economists believe the central bank's monetary policy will begin to align with those of other Western central banks, which have already started reducing rates due to slowing growth and lower inflation. An updated forecast from Norges Bank is anticipated in March, which may provide further insights into the future trajectory of interest rates. Overall, the decision reflects a cautious approach amidst changing global economic conditions.