COPENHAGEN, Denmark — Norway’s central bank said Thursday it had raised its key interest rate by a quarter-percentage point to 3.25%, saying the move was “needed to dampen inflation.”
Norges Bank said the country's inflation — which reached 6.5% in April – “is high and markedly above the target of 2%." It added that the rate would most likely be raised again next month.
The rate is now at its highest level since 2008.
Norway is not part of the European Union. The bank noted that although the economy has slowed, activity remains high.
“If the krone remains weaker than projected or pressures in the economy persist, a higher policy rate than envisaged earlier may be needed,” bank Governor Ida Wolden Bache said in a statement.
The rate hike takes effect Friday.
Sourse: abcnews.go.com
