Forecast Update Inflation in Focus

Nordea forecasts that Norges Bank will hike interest rates once more in 2026 to combat persistent inflation, even as the broader Norwegian economic outlook softens due to higher borrowing costs.

Key Takeaways

• 1.Norges Bank is expected to raise the policy rate once more in 2026 due to persistent inflation staying above the 2% target.
• 2.The Norwegian economy's outlook has slightly weakened due to higher interest rates, though unemployment remains low.
• 3.Inflation is being driven by domestically produced goods and services and strong wage growth, rather than just energy prices.

Table of Contents

• Slightly weaker outlook
• Inflation still high
• Stronger krone
• Norges Bank means business
• 1 / NORWAY: MACROECONOMIC INDICATORS
• A / Low unemployment
• B / Inflation is still high
• C / Norges Bank hikes again this autumn

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