OSLO (Reuters) – Norway’s central bank raised its benchmark interest rate by 50 basis points on Thursday, as expected by most economists, and said it plans to hike again in November.
Norges Bank’s monetary policy committee raised the sight deposit rate to 2.25% from 1.75%, having signalled in August a September hike was likely, but without indicating by how much.
The hike comes as central banks across the world battle to contain soaring inflation.
“The policy rate will most likely be raised further in November,” the bank said in a statement.
The rate, now at the highest level since 2011, is set to increase to around 3% during the upcoming winter, the bank said, adding that projections were more “uncertain than normal”.
(Reporting by Victoria Klesty and Gwladys Fouche, editing by Terje Solsvik)
