Nomura analysts anticipate that Norges Bank will implement one more interest rate increase in November to address persistent inflation pressures. This move is expected before the central bank begins to ease monetary policy next year.
According to FX Street, Nomura expects a 25 basis point rate cut starting next year, with further reductions continuing beyond 2027, ultimately targeting a rate around 3.50%. This gradual approach reflects a cautious response to evolving inflation dynamics.
For Japanese investors, understanding Norges Bank's trajectory is important as shifts in Norwegian rates can influence Nordic and broader European market sentiment, which in turn may affect FX and equity flows relevant to Japan's export-driven economy.