The central bank reduced its one-week repo rate to 45% from 47.5% as a cycle of higher borrowing costs bears fruit in cooler price rises.

A man carries a bag with groceries in a food street market at Uskudar neighbourhood in Istanbul, Turkey, Thursday, Jan. 23, 2025, same day as Turkey's central bank lowered its key interest rate by 2.5 percentage points to 45%. (AP Photo/Francisco Seco)

Norway's central bank held its policy interest rate unchanged at a 17-year high of 4.50% on Thursday, as unanimously expected by analysts in a Reuters poll, and maintained plans to start cutting borrowing costs in March.

Traders are placing big options bets on the European Central Bank delivering at least one half-point cut to interest rates by the middle of the year.

Malaysia's central bank kept its benchmark interest rate unchanged for the 10th consecutive policy meeting on Wednesday, citing strong economic growth and steady inflation, while warning of potential currency volatility.

Norway’s central bank held its key policy rate at 4.5% and reaffirmed that it will likely begin monetary policy easing in March, but noted concern over potential trade tariffs from the U.S.

Norges Bank, the central bank of Norway, is expected to maintain its deposit interest rate at 4.5%, the highest level since 2008, in its upcoming meeting in March. The bank is also set to restate its plans for its first reduction in borrowing costs since the pandemic.