Norges Bank faces ongoing inflation pressure as new data looms

Norges Bank continues to battle elevated price growth, having increased policy rates twice this year to make borrowing more expensive and dampen spending. The upcoming September inflation report from Statistisk sentralbyrå will provide fresh insight, but analysts anticipate figures close to the bank's own projections. While the bank's chief, Ida Wolden Bache, has signaled readiness for additional hikes if needed, the consensus view is that another increase is unlikely in the immediate term.

Nordea Markets expects external factors such as rising energy and raw-material prices could keep inflation pressure alive. Core inflation has remained above target since 2022, and the bank forecasts a gradual decline by year-end. Housing market trends, including a potential larger-than-usual price drop in September, may also influence monetary policy decisions.