Norges Bank left its policy rate unchanged at 4% in March, in line with expectations, but raised its rate projection, indicating a likely increase to 4.25–4.5% by the end of the year. Policymakers cited persistently high inflation—aggravated by tensions in the Middle East—and heightened uncertainty in oil and gas markets as the main factors behind the shift. While tighter monetary policy is expected to gradually bring inflation down to the 2% target by 2029, it is also likely to dampen economic growth and push unemployment back toward pre-pandemic levels. The bank emphasized that it will wait for additional economic data before deciding on the timing of its next move.