Central Banks
Norway’s Final Hike Defying Global Shift Sparks Krone Surge
- Decision to raise borrowing costs again was unanimous
- Rate will stay at 4.5% ‘for some time,’ says Wolden Bache
Ida Wolden Bache
Photographer: Fredrik Solstad/BloombergThis article is for subscribers only.
Norway’s central bank pushed ahead with a final hike in borrowing costs, acting to shore up the krone just as the US Federal Reserve leads a likely global pivot toward easing.
The currency surged after Norges Bank lifted its key deposit rate by a quarter point to 4.5%, an outcome predicted by only a minority of economists in a Bloomberg survey.