Rate announcement due on Dec. 14
15 analysts predict unchanged rate of 4.25, 12 see hike
Rates may have peaked, first cut seen in Q4 2024

OSLO, Dec 11 Reuters Analysts are divided over whether Norway39;s central bank will continue to raise interest rates this week, with a narrow majority predicting an unchanged cost of borrowing, a Reuters poll showed on Monday.

Of 27 respondents, 15 economists predict that Norges Bank will keep rates on hold at 4.25 on Dec. 14, while the remaining 12 participants forecast a hike to 4.50.

Markets are only pricing in a 1015 chance of a hike, however, analysts said, as a dip in November inflation added to other recent weakness in the economy.

The central bank last month kept its benchmark interest rate on hold and said it would likely raise the cost of borrowing in December unless its monetary policy makers become more assured that underlying inflation is on the decline.

Consumer price data has since showed that October inflation exceeded expectations while prices in November were somewhat lower than expected.

Core inflation stood at 5.8 yearonyear in November, down from 6.0 yearonyear in October, lagging analysts39; average expectation of 6.0 and the central bank39;s 6.1 prediction but far exceeding the mediumterm goal of 2.0.

The Norwegian currency has been weaker than expected by the central bank, however, which could again ignite consumer prices.

A business survey commissioned by the central bank recently showed that Norway…