Norges Bank is doing it right – Commerzbank

Looking at the Norwegian inflation figures published yesterday, I can only conclude: Norges Bank is doing it right. At its interest rate meeting last week, it gave no indication that the policy rate could be lowered earlier than announced in September (first cut in March 2025), even though the disinflation process has progressed since the summer. It postponed this decision until December, when it will have more data on inflation, Commerzbank’s FX analyst Antje Praefcke notes.

NOK remains under the influence of market uncertainty

“Norges Bank received the first set of data yesterday with the October figures. These confirm the basic picture that the disinflation process is gradually progressing. Although the headline rate appears to have risen again slightly ( 0.6% mom), the seasonally adjusted trend continues to point downwards and is broadly consistent with the inflation target. The same applies to the core rate, although it is still proving somewhat more stubborn than the headline rate. This is a phenomenon that we are familiar with from many industrialized countries.”