Norges Bank lifts rates by a quarter point as experts debate peak outlook

On Thursday, Norges Bank announced a 0.25-point increase in its key interest rate, arguing that inflation has stayed above its goal for a long period even though recent price growth was a bit lower than expected and the krone showed modest strength. Jeanette Fjære-Lindkjenn of DNB Carnegie described the move as predictable amid lingering uncertainty. Governor Ida Wolden Bache said the committee is ready to raise rates further if needed to bring inflation back to target.

Frank Jullum of Danske Bank interpreted the statement as indicating the rate-peak may already be behind us, estimating a modest chance of another increase. In contrast, Handelsbanken’s Nils Kristian Knudsen argued that the policy curve still allows for a higher rate later in the year. The decision follows earlier hikes in May and signals that further tightening remains on the table.