8/18, 10:24 AM (Source: TeleTrader)
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Norway's central bank raises interest rate by 50 bps

The Norges Bank, the central bank of Norway, stated on Thursday that it would raise the interest rate by an additional 50 basis points, doubling the average rate hike, to a total of 1.75%, the highest level since 2011. Additionally, based on the economic forecast and the balance of risks, the interest rate may be increased once more in September.

"A markedly higher policy rate is needed to ease the pressures in the Norwegian economy and to bring inflation down towards the target," commented the central bank's Governor Ida Wolden Bache. According to the report, the country's unemployment dropped slightly more than it was predicted, coming down to "very low levels," while the soaring prices are likely to "remain high for longer than expected earlier."

The latest reading for the country's inflation indicated the highest figure in the past 25 years, reaching 6.8% in July.

Baha Breaking News (BBN) / AB