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Norway Central Bank Hikes Rate To Highest Level Since 2009

Norway Central Bank Hikes Rate To Highest Level Since 2009
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Norway’s central bank raised its main interest rate to its highest since 2009 on Thursday in another busy week for global policymakers fighting soaring inflation.

The move came a day after the US Federal Reserve lifted its rate again by a hefty 0.75 percentage points and ahead of a similar decision expected by the Bank of England later Thursday.

The Norwegian central bank lifted its rate by 0.25 percentage points, taking it to 2.5 percent. While economists widely expected the move, the size of the increase was unknown.

It was the fourth consecutive hike, but lower than the three previous increases of 0.5 percentage points.

Norge Bank warned that it would likely raise its policy rate again in December.

“Economic activity is high in Norway, and unemployment is at a historically low level. Inflation has continued to edge higher and is markedly above our target of two percent,” central bank governor Ida Wolden Bache said in a statement.

“We are raising the policy rate to curb inflation,” she said.

The bank said the outlook “is more uncertain than normal.”

“The future policy rate path will depend on how the economy evolves,” it said.

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AFP

Agence France-Presse (AFP) is a French state-owned international news agency based in Paris. It is the world's oldest news agency, having been founded in 1835 as Havas.




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