UPDATE 3-Norway keeps rates on hold, will remain unchanged 'for some time'

(Adds economic outlook in paragraph 2, background in paragraphs 10-11, updates currency in paragraph 4)

By Terje Solsvik and Victoria Klesty

OSLO, Jan 25 (Reuters) - Norway's central bank kept its benchmark interest rate unchanged at 4.50% on Thursday, as unanimously expected by analysts, and said the cost of borrowing would likely stay at that level "for some time ahead".

The overall prospects for the Norwegian economy did not appear to have changed materially since December, Norges Bank's monetary policy committee said in a statement.

"The committee assesses that the policy rate is now sufficiently high to return inflation to target within a reasonable time horizon," Norges Bank Governor Ida Wolden Bache said.

The Norwegian crown strengthened to 11.36 against the euro at 0916 GMT, from 11.38 just before the announcement.

The central bank in December raised the benchmark rate in a surprise decision even as inflation had come off earlier highs, aiming to stamp out price pressures and shore up the currency.

"Monetary policy is having a tightening effect, and the economy is cooling down," Norges Bank said on Thursday.

"At the same time, business costs have increased considerably in recent years, and continued high wage growth and the crown depreciation through 2023 will likely restrain disinflation," it added.

Norway's core inflation stood at 5.5% year-on-year in December, a 15-month low, down from a record 7.0% last June but still exceeding the central bank's goal of 2.0%.

The central bank did not provide fresh economic forecasts or a new forward rate curve. Those are due to be updated when the next policy decision is announced on March 21.

While Norges Bank has kept the door ajar for a potential future rate hike, its main scenario as communicated last month is for rates to start falling towards the end of 2024 as inflation subsides.

A majority of economists participating in the Reuters poll predicted there would be one rate cut in the July-September quarter of 2024 and another one in the final three months, each by 25 basis points, bring the benchmark rate to 4.0% at the end of the year. (Reporting by Terje Solsvik and Victoria Klesty, editing by Gwladys Fouche and Toby Chopra)