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norges bank maintains policy rate amid rising inflation and economic uncertainty
Norges Bank has decided to keep the policy rate unchanged, signaling slower and smaller interest rate cuts until the end of 2027 due to higher-than-expected inflation. The bank is cautious about lowering rates prematurely, as inflation pressures remain significant. Analysts predict that the krone will remain stable in the coming months, with potential rate cuts not expected until at least June, pending further inflation data and economic developments.
uncertainty in us trade policy threatens consumer confidence and economic growth
Uncertainty stemming from U.S. trade policy under Trump is dampening business sentiment and could significantly impact consumer behavior. If consumers reduce spending due to fears of unemployment and rising prices, the foundation of U.S. growth may weaken, leading to a potential economic downturn. Confidence, once lost, can take a long time to recover, posing a high price for the economy.
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