Norway Lifts Rates to 2.25 Percent, Expects Smaller Hikes Ahead
OSLO—Norway’s central bank raised its benchmark interest rate by a widely-anticipated 50 basis points to 2.25 percent on Thursday, but said future hikes would be more “gradual,” weakening the country’s crown currency.
Norges Bank will probably hike again in November, by 25 basis points (bps), although predictions are unusually uncertain at the moment, its governor Ida Wolden Bache said.
“The rate forecast aligns with rate increases of 0.25 percentage points at the meetings in November, December, and March,” Bache told Reuters after Norges Bank’s announcement.
The latest rise comes as central banks across the world battle soaring inflation. The U.S. Federal Reserve lifted rates by a third-straight 75 bps on Wednesday and signaled more large increases to come. Switzerland’s central bank hiked by 75 bps on Thursday, while the Bank of England raised rates by 50 bps….