Norges Bank Signals Further Tightening Ahead

2026-06-18 08:04 By Agna Gabriel 1 min. read

The Norges Bank kept its policy rate steady at 4.25% in June, as expected, while signaling that further tightening may be needed as inflation remains too high.

Governor Ida Wolden Bache said rising business costs are likely to keep price pressures elevated and that the bank may raise rates again at one of its upcoming meetings.

The central bank noted that inflation has stayed above target for several years, while economic activity has softened slightly.

Norges Bank said uncertainty remains high due to the Middle East conflict and its impact on energy prices.

Oil and gas prices have fallen since March, while the potential reopening of the Strait of Hormuz could reduce external price pressures.

The bank’s updated forecast points to a policy rate slightly above 4.5% by year-end.

Inflation is expected to gradually decline toward the 2% target by 2029, though the future rate path will depend on inflation and labor market developments.



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Norges Bank Signals Further Tightening Ahead
The Norges Bank kept its policy rate steady at 4.25% in June, as expected, while signaling that further tightening may be needed as inflation remains too high. Governor Ida Wolden Bache said rising business costs are likely to keep price pressures elevated and that the bank may raise rates again at one of its upcoming meetings. The central bank noted that inflation has stayed above target for several years, while economic activity has softened slightly. Norges Bank said uncertainty remains high due to the Middle East conflict and its impact on energy prices. Oil and gas prices have fallen since March, while the potential reopening of the Strait of Hormuz could reduce external price pressures. The bank’s updated forecast points to a policy rate slightly above 4.5% by year-end. Inflation is expected to gradually decline toward the 2% target by 2029, though the future rate path will depend on inflation and labor market developments.
2026-06-18
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