Nordea forecasts a rise in inflation, leading to an anticipated increase in Norway’s key interest rate to 4.5% this autumn. The bank predicts this rate will remain stable through the end of 2028, signaling a prolonged period of higher borrowing costs. Despite growing uncertainty surrounding underlying price pressures evidenced by recent inflation figures, Nordea’s economists, Kjetil Olsen and Sara Midtgaard, believe the central bank will implement one final rate hike this fall. This outlook contrasts with expectations of potential rate cuts. The analysis is based on Nordea’s latest macroeconomic report, Economic Outlook. The economists suggest the recent inflation data supports their projection for continued monetary tightening. This prediction signals a cautious approach towards easing monetary policy in the near future.