Norges Bank leaves rates on hold at 4.50%, signals March rate cut

Norway's central bank kept interest rates on hold on Thursday at a 16-year high of 4.50%, as widely expected.

Norges Bank said in a statement: "The committee judges that a restrictive monetary policy is still needed to stabilise inflation around target, but that the time to begin easing monetary policy is soon approaching.

"Based on the committee's current assessment of the outlook, the policy rate will most likely be reduced in March 2025."

Also on Thursday, Sweden’s central bank reduced interest rates to their lowest level in almost two years and indicated that another cut could be on the cards early next year.

The Riksbank lowered its key policy rate by 25 basis points to 2.5%, in line with economists' projections, which it said would provide further support to the economy and help inflation stabilise at the target.

On Wednesday, the US Federal Reserve cut interest rates by 25 basis points, as expected. However, it also signalled there would be just two rate cuts next year, down from a previous forecast of four, sending equity markets tumbling.