Norway Raises Key Rate With End of Tightening Cycle Nearing
- Norges Bank lifts benchmark rate by 25 basis points to 4%
- Hikes beyond September aren’t ruled out, governor says
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Norway’s central bank raised borrowing costs to the highest level since the 2008 financial crisis and signaled it still plans another quarter-point hike in the current tightening cycle.
Norges Bank lifted its key deposit rate on Thursday by 25 basis points to 4%, the 12th increase since September 2021, as forecast by all analysts in a Bloomberg survey. It said the rate “will most likely be raised further in September,” with Governor Ida Wolden Bache keeping the door open for further hikes, depending on incoming data.