Norway Forecasts Limited Interest Rate Cuts Amid Economic Growth

In a new economic forecast, SBB chooses to remove an interest rate cut from its previous forecast. This is because the GDP growth for mainland Norway is expected to amount to 1.8 percent next year, compared to the previous forecast of 1.5 percent.

A clear upturn in the Norwegian economy and surprisingly high wage growth mean that we expect only one interest rate cut this year and two next year. The key interest rate will thus be reduced to 3.5 percent by the end of 2026, says SSB's Thomas von Brasch, reports the newspaper Dagens Næringsliv.