Norway Central Bank Lifts Rate to 1.75%, Sees Next Hike in September
By Dominic Chopping
Norway's central bank raised its key policy rate to 1.75% from
1.25% on Thursday, and said it expects to raise the rate further in
Analysts polled by The Wall Street Journal had expected the
central bank to raise its key rate to 1.75%, despite guidance from
the central bank at its last meeting in June suggesting it would
hike to 1.50%.
No new forecasts were compiled in conjunction with Thursday's
meeting, but Norges Bank said in June that it expects the policy
rate to rise to around 3% in the period to summer 2023.
The central bank said inflation has been considerably higher
than projected and markedly above the two percent target, so a
markedly higher policy rate is needed to ease economic pressures
and bring inflation down towards target.
The rise in prices has been broad-based in recent months and may
see inflation remain high for longer than expected, which suggests
a faster rise in the policy rate than forecast in June, the central
A faster rate rise now will reduce the risk of inflation
becoming entrenched at a high level and the need for sharper
tightening further out, it added.
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires
August 18, 2022 04:37 ET (08:37 GMT)
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