Norges Bank faces split expert views ahead of pivotal rate decision
Economists are divided on whether Norges Bank will raise or keep its policy rate steady before next week's meeting, with a Regionalt Nettverk business survey expected to influence the outcome.
Ahead of the next Norges Bank policy meeting, a Regionalt Nettverk report surveying Norwegian companies is set to play a key role in the rate-setting debate. Jan Ludvig Andreassen, chief economist at Eika, says summer saw a slowdown, with most growth coming from the state budget and coastal oil-related firms, while sectors such as construction lagged. He argues that raising the policy rate would not aid the energy sector and calls a hike "almost irresponsible."
Dane Cekov, a rate and currency strategist at SB1 Markets, acknowledges earlier uncertainty but now leans toward an increase, pointing to rising global rate expectations and inflation staying above the central bank's long-term goal. Both analysts highlight soaring diesel prices, which could compress transport margins and feed into the broader economic outlook presented in the Regionalt Nettverk survey.
Why it matters
The rate decision will shape borrowing costs and economic momentum across Norway.
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