Norges Bank leaves interest rate at 4%

Norges Bank lefts its policy rate unchanged on Thursday at 4%, as widely expected.

Norway’s central bank said in a statement that the outlook is "uncertain", but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of the coming year.

Governor Ida Wolden Bache said: "We are not in a hurry to reduce the policy rate. The interest rate outlook is little changed since the September Report.

"In our projections, the average residential mortgage rate declines to just above 4.5% in 2028. As such, we do not envisage a large reduction in the policy rate ahead."

Earlier on Thursday, Sweden’s central bank left the cost of borrowing unchanged at 1.75%, also as widely expected.

Policy announcements are due later in the day from the Bank of England and the European Central Bank. The former is expected to cut rates by 25 basis points to 3.75%, while the latter is expected to maintain the deposit rate at 2.00%.