Archive

Norway CPI Inflation 3.9% y-o-y (consensus 4.2%) in Mar-24

- Norway's CPI inflation rate slowed by 0.6 percentage points to 3.9% year-on-year in March 2024, well below the consensus forecast of 4.2%. This outcome marks the lowest growth rate since September 2023.
- The CPI-ATE inflation rate, excluding volatile components, drove the downside surprise but remained higher at 4.5% year-on-year.

Norges Bank Policy Rate 4.5% (consensus 4.5%) in Mar-24

• The Norges Bank decided to keep the policy rate at 4.5% to balance inflation control and economic growth amid slowing but above-target inflation and modest economic activity.
• Inflation is now expected to decelerate somewhat faster than anticipated, economic growth is more subdued in the first half of 2024 before improving, while unemployment rises slightly less than previously expected.
• The Committee is ready to adjust the policy rate in response to evolving economic and inflationary trends. It aims to steer inflation towards the 2% target by the end of 2027 while navigating prevailing uncertainties.

Norway CPI Inflation 4.5% y-o-y (consensus 4.9%) in Feb-24

- Norway's CPI inflation in February 2024 was 4.5% year-on-year, much lower than expected, but only reversing a little of November's surge.
- Downside news came from the core inflation rate falling to 4.9% y-o-y, which was also 0.4pp under the consensus.

Norges Bank: Jan-24

• Norges Bank's decision to hold the policy rate at 4.5% aligns with market expectations and is influenced by the ongoing challenge of managing above-target inflation amidst weak economic growth.
• Key factors influencing future policy decisions include domestic inflation trends, the strength of the krone, and global economic conditions, particularly the policy rate expectations of Norway's main trading partners.
• The committee indicates a readiness to either raise or lower the policy rate in response to shifts in inflation and economic conditions, underlining the balance between curbing inflation and supporting economic growth.