# Norges Bank Holds Rate at 4.5%, Keeps Further Hike in Play

Norway’s central bank paused after its September increase but said inflation remains too high and borrowing costs could rise again.

By Will Langan | 24X7 News
Published: 2026-11-05T10:06:48.823Z
Updated: 2026-11-05T10:09:08.439Z
Section: Money
Format: News
Canonical: https://24x7news.us/articles/norges-bank-holds-rate-november-5-2026

Norway’s central bank left its policy rate unchanged at 4.5% Thursday, pausing after a September increase while warning that borrowing costs could rise again if inflation remains persistent.

Norges Bank had raised the rate by a quarter percentage point in September. The November decision matched investors’ expectations and keeps the benchmark at its highest level of the year.

Governor Ida Wolden Bache said inflation remains too high and restrictive monetary policy is still needed to bring price growth back toward the bank’s 2% target. The central bank said it is prepared to raise the policy rate again if necessary, while also emphasizing that it does not want to slow the economy more than needed.

Norway’s consumer-price inflation rate was 3.4% in September. Core inflation, which excludes energy prices and tax changes, was 3%. Both measures remained above the central bank’s target.

The hold reflects a balance between continued price pressure and signs that the economy is cooling. Norges Bank said rapid increases in business costs could keep inflation elevated, but the stronger Norwegian krone has reduced the price of imported goods.

Norway is less directly exposed than many European countries to swings in imported electricity prices because most of its power comes from hydropower and other domestic renewable sources. Even so, higher global energy and borrowing costs can affect inflation, trade and the krone.

The decision followed the European Central Bank’s recent hold and came before a scheduled Bank of England announcement later Thursday. Several major central banks raised rates earlier this year as the Middle East conflict pushed up energy prices.

For U.S. investors, the Norwegian decision is another sign that advanced-economy central banks are reluctant to declare the inflation fight finished. Higher rates abroad can influence currency markets, global bond yields and financing conditions, even when the Federal Reserve’s own policy is unchanged.

Norges Bank’s next policy decision is scheduled for Dec. 17 and will be accompanied by a new monetary-policy report.

Sources:
- Norges Bank, policy-rate information and November decision calendar: https://www.norges-bank.no/en/topics/monetary-policy/policy-rate
- The Wall Street Journal: https://www.wsj.com/economy/central-banking/norges-bank-holds-key-interest-rate-but-signals-readiness-to-tighten-dedee6ad
- The Guardian live business report: https://www.theguardian.com/business/live/2026/nov/05/bank-of-england-interest-rate-decision-pound-inflation-oil-iran-stock-markets-latest-news-updates

## Sources
- Norges Bank, policy-rate information and November decision calendar: https://www.norges-bank.no/en/topics/monetary-policy/policy-rate
- The Wall Street Journal: https://www.wsj.com/economy/central-banking/norges-bank-holds-key-interest-rate-but-signals-readiness-to-tighten-dedee6ad
- The Guardian live business report: https://www.theguardian.com/business/live/2026/nov/05/bank-of-england-interest-rate-decision-pound-inflation-oil-iran-stock-markets-latest-news-updates
- Image: Mahlum / Wikimedia Commons (public domain): https://commons.wikimedia.org/wiki/File:Norges_Bank_Kirkegata.jpg