🏦🇳🇴Cable FX Macro Weekly Note: Norges Bank Rate Decision

**As seen in Risk In The Week report 03/24/25, get access now! cablefxm.co.uk

Back in January, the Norges Bank unanimously decided to keep the policy rate unchanged at 4.5%, a level it has maintained since December 2023. This decision aligned with market expectations, as all 16 economists surveyed by Bloomberg anticipated no change, reflecting Norges Bank’s consistent forward guidance from its December 2024 meeting. The central bank signaled a likely cut in March 2025, reflecting a strategy to guide inflation back to target without triggering a significant unemployment spike, based on an economy showing resilience amid restrictive policy. Strategists at Nordea Bank think the Norges Bank will keep its key rate at 4.5% next Thursday and present a clearly higher rate path going forward. They added that they will still signal a rate cut after summer. Nordea thinks, however, that there will be no cut neither this year or next as higher inflation and capacity utilization lifts the rate path.