The key interest rate remains steady at 4 percent, according to the latest announcement from Norges Bank.
In a press release, the bank’s committee emphasized the ongoing necessity for a tighter monetary policy, citing that price inflation continues to pose significant challenges.
Ida Wolden Bache, the central bank governor, expressed a measured outlook regarding interest rates. “We are in no rush to lower the interest rate,” she stated, noting that the interest rate forecast has remained largely unchanged since their last report. Bache anticipates that average mortgage rates could dip slightly, settling just above 4.5 percent by 2028.
The projections suggest a gradual easing of the key interest rate, with potential cuts expected one to two times next year, ultimately bringing it down to around 3 percent by late 2028.
It’s worth noting that in the past five years, rent has been reduced on only two occasions, underscoring the challenging landscape consumers face today.