Norges Bank Hikes Key Rate to 4.5%, Signals Further Tightening

Norges Bank raised its key policy rate by 25bp to 4.5%, the highest in over a decade, and signaled readiness to hike further if inflation does not return to the 2% target. Governor Ida Wolden Bache emphasized the need to keep rates elevated for an extended period. This marks a hawkish deviation from prior guidance, reinforcing a tightening bias amid persistent inflation.