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Norway Steps Up Action With First Half-Point Hike Since 2002

  • Officials also foresee rate increase at August interim meeting
  • Forecast for underlying inflation raised through 2025
Updated on

Norway’s central bank delivered its biggest increase in borrowing costs in two decades and pledged accelerated tightening to stamp out surging inflation, defying forecasts for less aggressive policy.  

Norges Bank raised the benchmark deposit rate by 50 basis points to 1.25% on Thursday. The move, its fourth increase since the onset of the pandemic, met investors’ expectations but took most economists surveyed by Bloomberg by surprise.