Norway: Norges Bank leaves rates unchanged in March
Norges Bank stays put again as expected: At its meeting on 25 March, Norges Bank kept its sight deposit rate at 4.00% for a fourth consecutive meeting. The hold had been priced in by markets.
Inflation outlook deteriorates on the Iran war: The Central Bank’s decision not to cut interest rates was primarily driven by inflation having remained above its 2.0% target for an extended period of time and expectations of higher-than-previously-anticipated price pressures ahead. The Bank noted that the outbreak of the war in the Middle East in late February has pushed up oil and gas prices, which coupled with higher-than-previously-expected wage growth, will likely prop up price pressures ahead. On the flipside, a rate hike wasn’t yet warranted as the Bank wished to first gather more information about how much the war will affect prices.
Norges Bank brings 2026 rate hikes to the table: Norges Bank said that if the economy evolves according to its current projections, it will likely hike its policy rate this year, contrasting previous guidance of cuts. Norges Bank will reconvene on 6 May, with the decision to be announced the following day.