Norway's central bank raises key interest rate to 2.75 percent
As expected, Norway's central bank (Norges Bank) raised its key interest rate again on Thursday.
The key interest rate has been increased by 0.5 percentage points – a so-called double increase – several times this year.
Multiple analysts predicted an interest rate increase of 0.25 percentage points this time - and they were right.
This is the seventh time Norges Bank has increased the interest rate since the end of the coronavirus pandemic.
According to DNB's chief economist Kjersti Haugland, a key interest rate of 2.75 percent will mean a mortgage interest rate of around 4 percent.
"We have an underlying inflationary pressure that has been stronger than expected. At the same time, the economy has faired better than we expected.
"In light of this, it would be surprising if Norges Bank completely reversed its plans now and stopped raising interest rates," Haugland told news bureau NTB before the interest rate was increased on Thursday.