The Riksbank leaves the policy rate unchanged | SVT News

However, several of the banks believe that the interest rate will be lowered later this year, starting in early summer. The Norwegian Economic Institute has also said in a forecast that interest rate cuts are to be expected during the year, and that the interest rate may be down to 3 percent by the end of the year.

In the Riksbank’s press release, they write that “if the inflation outlook continues to be favorable, the policy rate can probably be lowered in May or June”.

Inflation is about to stabilise, but due to continued elevated inflationary pressure, the Riksbank has decided not to lower the interest rate just yet. The policy rate has been at 4 percent since September 2023, which is the highest interest rate since 2008.