Norway’s central bank said Thursday that it was raising its key interest rate by a quarter-point to 3.25 percent to dampen inflation, and warned that it would probably increase the rate again in June.
The inflation rate, which stood at 6.5 percent in March, “is high and markedly above the target of 2 percent”, the bank said in a statement, adding that despite a slowing of growth, economic “activity remains high”. v“The labour market is tight, and wage growth is set to be higher in 2023 than last year,” it added.
Thursday’s increase, which was widely expected, brings the rate to its highest level since 2009. After five consecutive increases, the central bank paused. —AFP
