2025.12.1809:12:26UTC+00Norges Bank Keeps Interest Rate at 4%

In December 2025, the Norges Bank maintained its key policy rate at 4% for the second consecutive session, aligning with market projections. The central bank indicated that its monetary policy has effectively contributed to cooling the Norwegian economy and reducing inflation over recent years. While highlighting the persistent uncertainties in the economic outlook, the bank reiterated its commitment to lowering the policy rate further in the upcoming year, provided the economy progresses as anticipated. Nonetheless, inflation remains above the target, with underlying inflation consistently hovering around 3%. According to the central bank, the interest rate outlook remains largely unchanged since the September assessment. The current forecast supports the possibility of 1-2 rate cuts next year, with a further decline expected to slightly above 3% by the close of 2028.