The Norwegian central bank has raised its key interest rate more than analysts had expected. It rises by 0.5 points to 1.25 percent, as announced by Norges Bank on Thursday. Experts had only expected an increase of 0.25 points. It is now the fourth rate hike since the pandemic began, after the central bank cut rates to zero in May 2020. The head of the central bank, Ida Wolden Bache, has already announced a further interest rate hike of 0.25 points for August. The central bank justified its decision with inflation, which was higher than expected. In May, the annual inflation rate was 5.7 percent, while monetary authorities are also targeting a figure of 2 percent in Norway. The US Federal Reserve even raised its key interest rate by 0.75 points last week. The European Central Bank has not yet raised its key interest rate, but has at least announced an interest rate hike for July. They, too, want to fight inflation, which is at its highest level in decades. The background to this is above all increased energy and food prices as a result of the Ukraine war.
Inflation – Norway’s central bank increases interest rates – economy
