Economists clash over whether Norges Bank should raise rates on Thursday

Ahead of the Thursday policy announcement, Norway's top economists are split on the appropriate stance for Norges Bank. Jan L. Andreassen, chief economist at Eika, warns that a rate increase would be madness and sees one outlet level as already dampening growth. Erica Dalstø, chief strategist at SEB, describes the decision as being on a knife edge and favors a small 0.25-point hike to offset higher energy prices, while noting a stronger krone.

Marius Gonsholt Hov of Handelsbanken argues that inflation remains a problem and supports an immediate rise. Oddmund Berg from DNB Carnegie expects the rate to hold steady in September but anticipates a hike in December if inflation does not improve. Olav Chen of Storebrand highlights the broader global trend of rising rates and stresses that any postponement now could lead to a later adjustment.