Norges Bank decides on interest rates. Another hike signalled
Norges Bank has kept its key policy rate at 4.5%. Inflation remains above the bank's target, and monetary authorities indicate that restrictive monetary policy will be needed for some time yet. Norges Bank does not rule out another rate hike if price pressures do not ease quickly enough.
Interest rate in Norway unchanged. Norges Bank indicates what may happen next.
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The decision was announced on 5 November 2026. The Monetary Policy and Financial Stability Committee concluded that, since the previous meeting, no new information had emerged indicating a significant change in the outlook for the Norwegian economy. The rate therefore remained unchanged. At the same time, Norges Bank stresses that its task is to keep inflation close to 2% over time, while supporting high employment and economic stability.
Inflation still too high. Krone curbs pressure
Consumer price inflation currently stands at 3.4%. After accounting for tax changes and excluding energy products, price growth amounts to 3.0%, with goods and services produced in Norway rising the fastest. Price pressures remain elevated. Norges Bank indicates that strong growth in labour costs in recent years may continue to sustain inflation.
Energy prices also matter. They remain high partly due to conflicts in the Middle East, although spot oil prices have fallen since September, while futures prices for oil, gas and electricity have risen. The Norwegian krone has strengthened. According to Norges Bank, a stronger currency, considered separately from other factors, helps to curb inflation.
Energy prices also matter. They remain high partly due to conflicts in the Middle East, although spot oil prices have fallen since September, while futures prices for oil, gas and electricity have risen. The Norwegian krone has strengthened. According to Norges Bank, a stronger currency, considered separately from other factors, helps to curb inflation.
Inflation in Norway remains above target. Norges Bank reveals its plan ahead of the December meeting.Photo: Flickr.com/Norges Bank/CC BY-ND 2.0
Labour market remains stable. Bank remains ready to act
Unemployment has changed only slightly. The latest data indicate that the unemployment rate stands at 2.0%, while employment has probably continued to grow. Norges Bank assesses that unemployment is currently neither particularly high nor exceptionally low. The situation in the labour market has therefore not fundamentally changed the economic outlook since the previous meeting.
The bank continues to see a need for restrictive monetary policy. In the Committee's assessment, persistently high inflation may become more entrenched and more difficult to bring back to target. The monetary authorities are therefore monitoring signs of continued strong price pressures particularly closely. Norges Bank also declares its readiness to raise the interest rate again if necessary.
The bank continues to see a need for restrictive monetary policy. In the Committee's assessment, persistently high inflation may become more entrenched and more difficult to bring back to target. The monetary authorities are therefore monitoring signs of continued strong price pressures particularly closely. Norges Bank also declares its readiness to raise the interest rate again if necessary.
The next interest rate decision will be made in December. By then, Norges Bank will receive new economic data that will affect the future path of monetary policy. Along with the December decision, the bank will also present new forecasts.
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