Norges Bank leaves rates unchanged at 4.25% as expected

18th Jun 2026 09:26

(Sharecast News) - Norway's central bank left its interest rate unchanged on Thursday at 4.25%, as expected, but signalled that rate hikes could be on the cards.

Norges Bank governor Ida Wolden Bache said: "Inflation is too high, and the rapid rise in business costs in recent years will contribute to keeping inflation elevated ahead. New information indicates that inflation pressures are slightly stronger than we had anticipated earlier.

"We expect that a somewhat tighter monetary policy stance will be needed to bring inflation down to target within a reasonable time horizon. If developments turn out as currently envisaged, the policy rate will be raised at one of the forthcoming monetary policy meetings."

The Swiss National Bank also kept its key policy rate unchanged on Thursday, at 0.0%. This was in line with expectations.

On Wednesday, meanwhile, the Federal Reserve left the federal funds rate at between 3.5% and 3.75%, as expected, but interest rate forecasts were revised upwards for the next three years. The dot plot graph showed that nine of the Fed's 18 policymakers expect at least one rate hike before the end of 2026, although new chair Warsh abstained from submitting a projection. Back in March, no Fed participants expected a hike.

In the press conference following the decision, Warsh said policymakers were still "unambiguously and unanimously" committed to bringing inflation back to the Fed's 2% target. However, he added that "the Committee will deliver price stability", which markets took to mean the Fed is prepared to hike rates if necessary.

Still to come on Thursday, the Bank of England will make its latest policy announcement at midday amid expectations it will stand pant on rates at 3.75%.