OSLO () – Norway’s central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as unanimously expected by analysts in a poll, and said it plans to start cutting borrowing costs in March next year.

“The committee judges that a restrictive monetary policy is still needed to stabilise inflation around target, but that the time to begin easing monetary policy is soon approaching,” Norges Bank Governor Ida Wolden Bache said in a statement.

“Based on the committee’s current assessment of the outlook, the policy rate will most likely be reduced in March 2025,” Norges Bank said.

The Norwegian crown weakened to 11.78 against the euro at 0904 GMT, from 11.76 just before the announcement.

The Norwegian monetary policy stance contrasts with other Western central banks, most of which started cutting rates already this year as growth slowed and inflation eased from the highs of recent years.

Norway’s economy has weathered relatively high interest rates, economists say, helped by rising business investments and wages, increased government spending and currency depreciation.

The 28 participants polled by Dec. 11-16 unanimously predicted the central bank would keep rates on hold on Thursday and to start cutting in the first quarter of 2025.

The bank highlighted the risk of a trade war between the United States and China as one of the issues it discussed, saying it “was concerned with the risk of an increase in international trade barriers”.

“Higher tariffs will likely dampen global growth, but the implications for price prospects in Norway are uncertain,” the bank said.