Norway’s central bank left its key policy rate unchanged at 4.25% on Thursday, in line with market expectations, and reaffirmed that additional easing is likely before the end of 2025. The decision follows a surprise 25-basis-point reduction in June—the first cut in more than five years—taken after inflation slowed faster than anticipated. Governor Ida Wolden Bache said further action will depend on incoming data but reiterated that “if the economy evolves broadly as envisaged, we will lower the policy rate further in the course of the year.” All 26 economists surveyed by Reuters had forecast no change this month and unanimously expect the rate to fall to 4.00% at the committee’s 19 September meeting, with many anticipating another quarter-point cut in December. The krone initially firmed against the euro after the announcement, though gains later faded. Norges Bank’s stance now more closely mirrors that of other Western central banks, which began loosening policy last year, as officials balance lingering inflation pressures with signs of softer domestic growth.