The Norges Bank left its key policy rate unchanged at 0.75 percent on October 25th 2018, in line with market expectations, saying underlying inflation is close to the 2 percent target. It follows a 25bps hike in the previous meeting and policymakers reinforced that next rate increase will 'most likely' be in Q1 2019, followed by gradual rises. The bank added that economic growth has been lower than expected and inflation rate higher than projected. In September, annual inflation rate stood at 3.4 percent, the same as in August. Interest Rate in Norway averaged 4.13 percent from 1991 until 2018, reaching an all time high of 11 percent in September of 1992 and a record low of 0.50 percent in March of 2016.
Interest Rate in Norway is expected to be 0.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Norway to stand at 1.00 in 12 months time. In the long-term, the Norway Interest Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.