The central bank of Norway raised its key policy rate by 25bps to 1 percent on March 21st 2019, in line with market expectations. It is the first rate hike so far this year. Policymakers said the Norwegian economy is expanding at a solid pace, capacity utilisation appears to be slightly above a normal level and underlying inflation is a little higher than the inflation target although there are prospects for weaker growth and lower interest rates abroad. The central bank expects a slightly faster rate rise in 2019 and a somewhat lower policy rate further out. Interest Rate in Norway averaged 4.09 percent from 1991 until 2019, reaching an all time high of 11 percent in September of 1992 and a record low of 0.50 percent in March of 2016.
Interest Rate in Norway is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Norway to stand at 1.15 in 12 months time. In the long-term, the Norway Interest Rate is projected to trend around 1.75 percent in 2020, according to our econometric models.