Norway's Central Bank Leaves Rates On Hold, Signals No Cut This Year

Norway’s central bank decided to keep its key policy rate at 4.5%. The bank emphasized the likelihood of maintaining this rate for the foreseeable future due to the expected high wage growth that will likely lead to sustained inflation. Despite a decrease in inflation, it has remained above the target level. Additionally, surveys indicate a possible acceleration in wage growth, prompting concerns that reducing the key rate could result in inflation staying above the desired target for an extended period.