Norway’s central bank held the policy rate at 4.5% in an interim meeting, in line with market expectations, and reiterated it would raise rates again if necessary to curb inflation. The bank did not update economic forecasts or its rate path. Policymakers framed the pause as a hawkish hold amid a renewed global tightening cycle and an escalation of conflict involving Iran that is adding upside price pressure. The bank delivered its second rate hike this year in September and said borrowing costs

Norway’s central bank held the policy rate at 4.5% in an interim meeting, in line with market expectations, and reiterated it would raise rates again if necessary to curb inflation. The bank did not update economic forecasts or its rate path. Policymakers framed the pause as a hawkish hold amid a renewed global tightening cycle and an escalation of conflict involving Iran that is adding upside price pressure. The bank delivered its second rate hike this year in September and said borrowing costs may need to remain high for a period to return inflation to the 2% target. Norway’s mainland economy is still expanding, wage pressures are likely to ease only gradually, and a potentially more expansionary budget next year from the minority Labour government and its allies could further add to inflationary pressures.