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Norway Policy Rate 4.5% (consensus 4.5%) in Jun-24

• The Norges Bank kept the policy rate at 4.5%, aligning with expectations, to maintain a tight monetary stance amid high but slowing inflation.
• Despite low growth, economic activity exceeded projections in Q1, and employment remains high, supporting household consumption and overall economic stability.
• While inflation has slowed, it remains above target, necessitating the continuation of a tight monetary policy; adjustments will depend on inflation trends, economic growth, and global factors.

Norway CPI Inflation 3.0% y-o-y (consensus 3.3%) in May-24

- Norway’s CPI inflation rate of 3.0% for May 2024 is below the consensus and previous months’ readings, diverging significantly from the one-year average, suggesting effective policy actions.
- CPI-ATE inflation at 4.1% and PPI inflation at 3.2% reflect sustained underlying inflationary pressures, indicating a need for continued vigilance rather than rushing to cut rates.

Norway Unemployment Rate 4.3% in Apr-24

- Norway's unemployment rate rose to 4.3% in April 2024, the highest since January 2024, reflecting potential issues amid moderate manufacturing growth and flat GDP.
- Economic indicators, such as a PMI of 52.4 and weak retail sales growth, highlight a need for targeted interventions to align job creation with existing economic activities.

Norway CPI Inflation 3.6% y-o-y (consensus 3.5%) in Apr-24

- Norway's CPI inflation slowed from 3.9% to 3.6% year-on-year in April 2024, slightly surpassing market expectations of 3.5%.
- Upside news in core inflation drove the disappointingly small decline as, at 4.4%, it was also 0.1pp higher than expected.