Norges Bank holds rates at 4.50% as expected; Reiterates “The policy rate will likely be reduced in March”

INFLATION

• Inflation has moved closer to target, but the rapid rise in business costs is likely to contribute to stoking inflation ahead.


• The Committee’s assessment is that a restrictive monetary policy is still needed to stabilise inflation around target, but that the time to begin easing monetary policy is soon approaching.

TARIFFS

• The Committee was concerned with the risk of an increase in international trade barriers.


• Higher tariffs will likely dampen global growth, but the implications for price prospects in Norway are uncertain.

Reaction details (09:06)

• No sustained reaction seen in the NOK

Analysis details (09:06)

• Overall the rate decision and statement were as expected.


• Attention remains on the March MPR for the first cut.


• One point to note from the release was the commentary around tariffs - the bank is very much keeping its options open at this stage and as so, we will be looking to the Press conference from Governor Bache at 9:30 GMT

23 Jan 2025 - 09:00- Fixed IncomeImportant- Source: Norges Bank