Norges Bank has decided. What's next for interest rates and the NOK exchange rate?

Ida Wolden Bache stated that since the September meeting, no significant new data has emerged. As a result, the outlook for the Norwegian economy remains unchanged. Keeping the interest rate at its current level was in line with analysts' expectations. The Norwegian krone exchange rate showed no significant fluctuations after the decision was announced.

The reason for no change remains persistently high inflation. According to Norges Bank, price growth is holding at around 3.0 percent, which exceeds the inflation target of 2.0 percent.

Unemployment in the country has risen slightly, and production levels remain normal. The bank warns that lowering rates too quickly could keep inflation above target for too long.

Economists emphasize that maintaining high rates hits the construction sector and real estate market. Carl O. Geving from the Norwegian Real Estate Association pointed out in Nettavisen that high financing and construction costs are limiting the number of new housing investments.

The supply of new apartments is decreasing, while the secondary market is seeing record turnover. Representatives of banks such as Bluestep Bank note that many Norwegians are still struggling with high loan costs and rising debt.

Although Norges Bank indicates that the first rate cuts may come in 2026, economists point out that the December decision could already signal a change in monetary policy direction. Heads of financial institutions note that falling inflation and rising unemployment may force more accommodative measures in the coming months.