Norway central bank raises rate to 4.25%, eyes surprise December hike

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Norway central bank raises rate to 4.25%, eyes surprise December hike
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Norway's central bank raised its benchmark interest rate by 25 basis points (bps) to 4.25% on Thursday to curb inflation, as widely predicted, and, in a surprise move, said it would likely hike again in December.

All 30 economists polled in advance by Reuters expected a 25-basis-point hike on Thursday, and a majority of participants had predicted that this would mark the peak of Norges Bank's two-year campaign of tightening.

Norway's annual core inflation, which excludes energy costs, stood at 6.3% in August, down from a June peak of 7.0%, and has remained above the bank's 2% target since February 2022.

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