Norway raises its policy rate to 4.50%, the second increase this year

Norges Bank lifted the policy rate from 4.25 to 4.50 per cent on 24 September 2026 and said it may go higher. If you have a loan with a floating rate in Norway, your bank must give you two months’ notice before a higher rate applies.

Norway’s central bank raised its policy rate by a quarter of a percentage point to 4.50 per cent on Thursday 24 September 2026. The new rate applies from 25 September. It is the second increase this year: Norges Bank raised the rate to 4.25 per cent on 7 May 2026 and kept it there at its meeting on 12 August.

“Inflation has been above target for several years. By raising the policy rate, we are helping to reduce inflation,” Governor Ida Wolden Bache said. The target is 2 per cent. Underlying inflation – consumer prices adjusted for tax changes and excluding energy (CPI-ATE) – was 3.0 per cent in the year to August, and the bank said headline inflation had been higher than it projected. Registered unemployment was 2.1 per cent in August, and the krone has strengthened.

The bank does not expect to reverse course soon. It said it will likely be necessary to keep the policy rate elevated for a time, that it is prepared to raise it further if needed, and that on its current path inflation will slow from next year and reach 2 per cent in 2029. The next rate decision is announced on 5 November 2026.

What it means if you are moving to Norway: the rate on a floating-rate loan follows the bank’s own pricing, and banks usually adjust it after a change in the policy rate. Under the Financial Contracts Act (finansavtaleloven), a bank must give a consumer two months’ notice before raising the interest rate on an existing loan – a rule that has applied to rate changes notified since 1 July 2023. Use that time to compare offers from other banks. If you are about to buy a home, the rate you are offered on a new loan can already reflect the increase.

Our guide Renting in Norway – deposit rules, rent rises, Husbanken support and buying a home explains mortgages, Husbanken support and what a newcomer needs before a bank will lend.

Sources: Norges Bank, press release “Policy rate raised to 4.50%”, 24 September 2026, and rate decision September 2026; Norges Bank, press releases of 7 May and 13 August 2026; Finans Norge, “Dette betyr finansavtaleloven for deg som forbruker”, read 25 September 2026.

Relocate in Europe provides general information, not legal or financial advice. Check with your bank and the authority named above before you act.