Norges Bank raised its policy rate to 4.50% as it continues to address InflationA broad rise in prices that reduces money’s purchasing power. Central banks watch inflation because it affects interest-rate decisions.Read More pressures. The Central bankThe institution that sets monetary policy for a country or currency area, including interest-rate decisions that can move currencies.Read More also kept the possibility of further rate hikes open if economic conditions and inflation remain elevated.
Norges Bank raised its policy rate by 25 basis points to 4.50% on September 24, saying tighter policy is needed to return inflation to its 2% target. Governor Ida Wolden Bache said rates will likely remain elevated for a time and the bank is prepared to tighten further if needed. The new forecast keeps rates higher for longer than projected in June, while inflation is expected to return to 2% in 2029.
