The Norges Bank, Norway's central bank, is expected to keep its deposit rate at 4.5%, the highest level since 2008, during its upcoming meeting in March. The bank is also anticipated to reaffirm its plans for the first reduction in borrowing costs since the pandemic. However, the trajectory beyond that remains uncertain.
Focus on Future Policy Easing
The upcoming Thursday meeting is likely to draw attention—not for announcing a new path for borrowing costs or economic forecasts—but for any hints regarding future monetary easing. This is because the meeting is an interim session, and no significant policy changes are expected to be announced.
Progress in Inflation Control
Norges Bank officials, along with their counterparts in Australia and Japan, may signal progress in their longstanding efforts to control consumer prices. These three nations are the only members of the G10—a group of major economies with key currencies—that have not lowered interest rates since the global health crisis. This achievement is viewed as a milestone in the ongoing battle to manage inflation.
