Norges Bank has decided to maintain its interest rate at 4.5%, diverging from the trend of rate cuts seen in other countries like the US and the Eurozone.

This decision comes despite a persistent rise in prices, with underlying inflation in Norway at 3.2% as of August.

The central bank aims to keep the rate steady until the end of the year, with potential reductions starting in the first quarter of 2025. The Norwegian krone has strengthened following the announcement, although its previous weakness has contributed to higher import costs and inflation.

Economists, including Kyrre Knudsen from Sparebank 1 SR-Bank, anticipate the first rate cut in March 2025, attributing the delay to the krone's volatility.

Meanwhile, Norwegian households continue to feel the pinch of rising costs, particularly in housing and food, as inflation remains above the central bank's 2% target.