{
  "id": 9967796,
  "title": "Fra rentekutt til heving på ett år: – Klart det føles smertefullt",
  "url": "https://urgent.news/2026/09/26/fra-rentekutt-til-heving-pa-ett-ar-klart-det-f-les-smertefullt",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T11:20:36.000Z",
  "source": {
    "name": "E24 Norway",
    "slug": "e24-norway",
    "url": "https://e24.no/norsk-oekonomi/i/zOpdqv/fra-rentekutt-til-heving-paa-ett-aar-klart-det-foeles-smertefullt"
  },
  "original_language": "en",
  "account": "Norges Bank reduced interest rates twice in a single year after their last rate hike of 4.5%, returning to the same level they had at the start of 2025. This occurred just a year after the rate was cut twice. Signals emerged as early as January that rates would be further lowered. Three months later, the rate was raised twice again. Economists believe inflation forecasts have become overly optimistic. Norges Bank's projections indicate it will take longer and longer to bring inflation back to target. While the Norwegian economy has managed relatively well under high interest rates, inflation has proven harder to bring down than anticipated. The central bank aims to achieve low and stable price growth around 2%. However, economic development and labor market conditions are also considered. The war in the Middle East has added uncertainty, contributing to higher oil and energy prices that push up inflation. While the war may not have necessitated the rate cut in May, it is likely that the economy could have achieved the rate reduction without the conflict. Inflation has proved more problematic than expected. Norges Bank began cutting rates in June 2025, lowering it to 4% in September of the previous year. In 2025, the bank indicated they would \"lightly apply the brakes\" to allow prices to return to the inflation target without excessively constraining the economy. As early as January, Norges Bank forecasted further rate reductions throughout 2026 if the economy developed as expected. However, price growth remained too high, and the bank did not anticipate a significant rate hike. Actual price growth in January exceeded expectations, with core inflation (excluding energy and food) already at 3.4%, well above the 3% target. Many economists later underestimated the rate cuts anticipated. In March, Norges Bank warned that further rate hikes were likely in the near future due to higher-than-expected inflation and increased energy prices from the Middle East conflict. In May, the first rate hike occurred, followed by another in September. The latest data for August shows core inflation at 3%, hovering around the 3% target for several years. Recent conflicts and higher energy prices play a role, but economists argue that higher wage growth has been a key driver of rising prices for Norwegian goods and services. Domestic factors, such as sustained wage growth over the past few years, have significantly contributed to the upward pressure on prices, explains SEB's chief economist. Additionally, the effects of the war on global inflation expectations have prompted other central banks to raise rates or signal rate increases. This has contributed to higher interest rates at home. The global inflationary pressure and central banks raising rates worldwide add to the external inflation risk becoming domestic.",
  "summary": "Særlig én faktor tvang Norges Bank til helomvendingen som har gitt to rentehevinger i 2026.",
  "key_points": [
    "Norges Bank reduced interest rates twice in 2025",
    "Economists believe inflation forecasts were overly optimistic",
    "Wage growth significantly contributed to rising prices"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}