Norges Bank Holds Policy Rate at 4.25% for Second Straight Meeting, Warns a Hike 'May Still Become Necessary'

Norway's central bank left its policy rate unchanged at 4.25% for a second consecutive meeting on August 12, 2026, judging that a restrictive stance is still needed even though inflation has cooled faster than expected. Norges Bank's Monetary Policy and Financial Stability Committee had signaled in June that a further rate hike would likely be needed at one of its "forthcoming" meetings, but held off this time as fresh data came in softer than projected.

Twelve-month consumer price inflation eased to 3.0% in July, and the closely watched core measure — CPI adjusted for tax changes and excluding energy products (CPI-ATE) — slowed to 2.7%. Governor Ida Wolden Bache welcomed the slowdown but cautioned it was "too early to conclude that the inflation outlook has changed materially," leaving a hike squarely on the table for later this year.

The Committee did not publish new economic forecasts at this meeting. Its next Monetary Policy Report, together with the next rate decision, is due September 24, 2026 — the meeting markets now see as the more likely point for any further tightening.