Norway Hikes for First Time Since 2023, Taking Lead in Europe

Norges Bank delivered western Europe’s first hike in borrowing costs since the outbreak of the Iran war, opting for immediate action to tackle stubbornly high inflation.

The Norwegian central bank increased its key deposit rate by a quarter point to 4.25% on Thursday. The move, its first tightening step since 2023, was predicted by only five out of 17 economists surveyed by Bloomberg, while most anticipated no change.