Norges Bank raised interest rates to 4 percent, the highest since 2008.
The bank said that inflation – which reached 5.4 percent last July – “has decreased but is still significantly higher than the target of 2 percent.”
He added that a somewhat higher interest rate is needed to bring inflation back to the target level.
The Bank’s governor, Ida Walden Bach, said that the future policy path of the interest rate will depend on “economic developments”, and the rate is likely to be raised again next month.
“If the economic situation develops as currently expected, the interest rate will be raised further in September,” it said in a statement.
The bank noted that activity in the Norwegian economy, which is not part of the European Union, remains high.
It is reported that central banks around the world have raised borrowing costs to target the painful increase in consumer prices (inflation).
Norges Bank started raising interest rates from zero in September 2021.
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