Norges Bank’s Monetary Policy and Financial Stability Committee raised the policy rate by 0.25 percentage points to 4.50% on 23 September. The central bank said consumer-price inflation had been higher than projected, while underlying inflation had eased more than expected. It nevertheless judged that the outlook farther ahead had not changed materially.

The bank expects the rate to remain elevated for a period before declining somewhat. It projects inflation to slow from 2027 and reach its 2% target in 2029. The committee said it could raise the rate again if inflation proves persistent, while a faster fall in inflation or a weaker labour market could support a lower path.