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.