From Morningstar: 2024-10-03 06:24:00

Central banks across Europe are easing policies as inflation nears targets, aiming for a soft landing. However, Norway’s central bank has maintained their highest policy rate since 2008 due to high inflation and strong economy backed by oil and gas investments.

Sweden’s Riksbank cut rates to 3.25% amidst concerns over slow inflation. Norway’s economy benefits from strong oil and gas sector, with unemployment at record lows and wage growth over 5%.

A weak currency complicates Norway’s rate policy, affecting inflation and profitability. Keeping rates steady while other central banks cut may pose risks, but Norges Bank hopes for a NOK strengthening to support economy.

Norges Bank forecasts rate cuts starting in 2025, with Nordea expecting fewer cuts than the central bank projects. SEB predicts a delay in cuts until March 2025 due to the economy holding up, with eventual key rate dropping to 3.50% by year end.



Read more at Morningstar: As Rates Fall in Europe, Norway’s Central Bank…