Norwegian central bank policy faces critique as housing sales dip in July

Analysts forecast a prolonged period of elevated interest rates in Norway, even as international central banks move toward monetary easing. According to SEB, Norges Bank is expected to raise its policy rate to 4.50 percent in the third quarter and maintain that level until late 2027. However, an analysis from Oxford Economics challenged this strategy, arguing that using interest rates to curb inflation is ineffective when price pressures are driven primarily by supply-side issues such as low productivity, lagging home construction, and a weaker krone.

In the real estate sector, domestic housing sales fell approximately 10 percent in July compared to the previous year, a decline industry leaders partially attributed to seasonal distractions during the summer. Meanwhile, equity investors on the Oslo Stock Exchange are increasingly shifting focus away from high-dividend stocks toward broader sector trends.

Sources: Aftenposten, Dagens Næringsliv (DN), E24, Finansavisen