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Norway government won't instruct central bank on rates, prime minister says

BY Reuters | ECONOMIC | 04/15/26 04:19 AM EDT

OSLO, April 15 (Reuters) - The Norwegian central bank is independent and the government will not dictate monetary policy, Norway's Prime Minister Jonas Gahr Stoere told parliament on Wednesday.

Norges Bank last month said it aimed to hike rates once or twice in 2026 to combat resurgent consumer prices fuelled by wage growth and rising energy costs, reversing course after it earlier flagged plans to ease policy.

The statement sparked a debate in which labour unions and others said the announcement, coming during nationwide wage talks, was counterproductive and that inflation was driven by foreign factors outside Norges Bank's influence.

But the central bank governor on Wednesday reiterated Norges Bank's plans, adding that the policy committee was ready to "make decisions that are unpopular" in order to bring inflation back to the 2.0% goal from the current 3.0%. (Reporting by Gwladys Fouche, editing by Terje Solsvik)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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