On Tuesday, the Norwegian Statistics Bureau (SSB) will present its economic outlook, including projections until 2029. The bureau predicts that interest rates will only be cut in 2027 and 2028, with the key interest rate expected to be at 3.5% by 2029. Researcher Thomas von Brasch stated that rising import costs due to the Middle East conflict and high inflation rates reported in January and February are significant factors keeping interest rates stable this year.

Previously, the SSB had forecasted rate cuts in 2026 and 2027, but recent economic developments have altered these expectations. Inflation in Norway has surged early this year, exacerbated by skyrocketing oil and gas prices linked to the ongoing conflict in the Middle East. This escalation in prices is likely to sustain overall inflation levels, thereby affecting monetary policy decisions.

The Norges Bank has indicated that there could be one to two interest rate cuts by 2026, with new economic forecasts and a monetary policy decision set to be announced next week. Currently, the key interest rate stands at a pivotal point, as these predictions will play a crucial role in shaping Norway’s economic landscape moving forward.