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Norway’s central bank enacts big rate hike to tame inflation

KIFI

COPENHAGEN, Denmark (AP) — Norway’s central bank has raised its key policy interest rate by half a percentage point, saying “inflation has been considerably higher than projected. The rate increase Thursday to 1.75% is larger than expected as the bank takes aim at inflation that reached 6.8% in July. Norges Bank says “activity in the Norwegian economy is high” and unemployment is very low. It says inflation may remain high longer than expected so a faster rate hike now may prevent sharper tightening later. Based on the outlook and balance of risks, the bank says it will likely raise the policy rate further in September.

Article Topic Follows: AP National

Associated Press

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