Norway’s central bank surprised markets by raising its key policy rate Thursday, saying that a final hike in the current cycle was needed to ensure that inflation doesn’t remain too high for an extended period.
Norges Bank increased its key policy rate by 25 basis points to 4.50%, versus a Dow Jones poll before the decision that had pointed to an unchanged rate of 4.25%.
“We see that the economy is cooling down, but inflation is still too high,” Governor Ida Wolden Bache said. “The policy rate will likely be kept at 4.5% for some time ahead.”
Source : Market Watch