Norway Keeps Rates Unchanged, Plans March Cut
OSLO, Jan 23 (Reuters) - Norway's central bank kept its key policy rate unchanged at 4.50% on Thursday, as expected by analysts in a Reuters poll, while sticking to its plan to start cutting borrowing costs in March.
Norwegian policymakers are expected to start catching up with their peers this year as most other western central banks have already begun rate-cutting cycles amid a slowing global growth outlook and moderating inflation.
"The policy rate will most likely be cut in March," Norges Bank Governor Ida Wolden Bache said in a statement, which would mark the first reduction since May 2020.
The central bank said last month it planned three rate cuts in 2025, taking the key rate to 3.75% by the end of the year. It is due to publish a revised forecast in March.
The Norwegian crown had weakened slightly to 11.75 per euro at 0914 GMT from 11.74 just before the announcement.
In its statement, Norwegian policymakers were concerned about the risk that barriers to international trade could rise.
"Higher trade barriers will likely dampen global growth, but the implications for Norway's price outlook are uncertain," the bank said.
(Reporting by Gwladys Fouche; Editing by Terje Solsvik and Jason Neely)