The Norges Bank kept its policy rate steady at 4% in March, as expected, but revised its forecast upward, signaling a likely increase to 4.25–4.5% by year-end. Policymakers pointed to stubbornly high inflation, exacerbated by Middle East tensions, and elevated uncertainty in oil and gas markets as key drivers. While a tighter policy is expected to gradually reduce inflation to the 2% target by 2029, it may also slow economic growth, pushing unemployment toward pre-pandemic levels. The bank stressed it will await further data before deciding on the timing of the next move.