Norway's Norges Bank Raises Rate to 4.50%, Signals Possible Further Hike

Norway's central bank raised its policy interest rate by 25 basis points to 4.50% on Sept. 24, 2026, citing the need to contain inflation, and said it may hike again. "It will likely be necessary to keep the policy rate elevated for a time, and the committee is prepared to raise the policy rate further if needed to bring inflation down to the 2% target within a reasonable time horizon," Governor Ida Wolden Bache said. The Norwegian crown strengthened to 10.76 against the euro at 0806 GMT, from 10.79 just before the announcement. Core inflation rose to 3.0% year-on-year in August, below Norges Bank's 3.3% forecast but above target. With the new rate path, inflation is projected to slow from 2027 and reach 2% in 2029. Unemployment is expected to edge above pre-pandemic levels.