Investing.com — Norges Bank, the central bank of Norway, is expected to maintain its deposit interest rate at 4.5%, the highest level since 2008, in its upcoming meeting in March. The bank is also set to restate its plans for its first reduction in borrowing costs since the pandemic. However, the future steps beyond this are not yet clear.
This Thursday’s meeting is likely to be a focus of attention, not for the announcement of a new path for borrowing costs or economic forecasts, but for any hints about future easing of monetary policy. This is because the meeting is an interim one, and no significant policy changes are expected to be announced.
Norges Bank officials, alongside their counterparts in Australia and Japan, can point to success in their prolonged efforts to control consumer prices. These three nations are the only members of the Group of 10 major currency jurisdictions that have not reduced their rates after the global health crisis. This achievement is seen as a sign of progress in the ongoing struggle to manage inflation.
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