The Central Bank of Norway raised interest rates by 25 basis points to 4.5% as expected.

(1) The Norwegian central bank raised its policy rate by 25 basis points to 4.5% in September 2026, in line with market expectations, as policymakers intensified efforts to curb inflation. (2) The CPI inflation rate in August rose to 3.3%, reaching its highest level in four months, while core inflation also climbed to 3%. (3) Ongoing tensions between the United States and Iran continue to cast a shadow over the price outlook, with rising oil and natural gas prices, as well as increases in various other raw material prices. (4) The central bank signaled that the policy rate may need to remain elevated for some time and indicated its readiness to further tighten policy if necessary to bring inflation back to the 2% target within a reasonable timeframe. (5) Meanwhile, economic activity grew largely as expected, employment continued to rise, and the unemployment rate remained mostly unchanged in recent months. (6) Additionally, capacity utilization appears to have declined slightly compared to previous estimates in June.