March cut likely, Norges Bank chief says
Inflation has declined but remains above target
Sees uncertainty over trade barriers
Norway currency weakens slightly

OSLO, Jan 23 Reuters Norway39;s central bank held its policy interest rate unchanged at a 17year 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.

Economists expect Norway39;s monetary policy to start catching up this year with that of other Western central banks, most of which began cutting rates in 2024 as growth slowed and inflation waned.

The policy rate will likely be reduced in March, Norges Bank Governor Ida Wolden Bache said in a statement.

It would be Norges Bank39;s first interest rate cut since May 2020.

The central bank last month said it planned to cut rates three times in 2025 to 3.75 by yearend. It is due to release a revised forecast in March.

The Norwegian crown had weakened slightly to 11.75 against the euro by 0914 GMT, from 11.74 just before the announcement.

In their discussions, Norwegian central bankers expressed concern about the risk of an increase in international trade barriers.

Higher tariffs will likely dampen global growth, but the implications for price prospects in Norway are uncertain, the bank said in the statement.

All but one of the 25 analysts in the Reuters Jan. 1320 poll predicted that a quarterpercentage point rate cut to 4.25 will be announced in March, while a…