The Bank of Norway for the third consecutive time raised its key rate by 0.5 points Thursday, to 2.25%, its highest level since the end of 2011, in order to curb inflation.
After this increase widely expected by economists, the issuing institute said that it would most likely tighten its monetary policy again after its next meeting in November.
Inflation is well above our 2% target, and is likely to stay high longer than previously expected, central bank governor Ida Wolden Bache said in a statement.
We are raising the policy rate with the aim of lowering inflation, she added.
Like the rest of the world, Norway is experiencing bouts of inflation, particularly due to soaring energy prices.
Its inflation rate was 6.5% over one year in August. Excluding energy prices and tax changes, core inflation, the indicator used by the Bank of Norway, came out at 4.7%, more than twice the official monetary policy target.
Having become the main supplier of natural gas to Europe in place of Russia in the wake of the invasion of Ukraine, the Scandinavian country is experiencing vigorous growth, driven in particular by hydrocarbons.
For 2022, the Norwegian government expects an increase in Gross Domestic Product (GDP) of 3.6%.
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After having long kept its key rate at zero to cushion the economic effects of the Covid pandemic, the Norwegian central bank was one of the first in the Western world to raise its rates, with a first hike in September 2021.
His counterparts in the industrialized world, from the US Fed to the European Central Bank (ECB) to the Swedish and Swiss central banks, have since followed suit.
According to the Bank of Norway, the Norwegian key rate should be raised to around 3% over the winter, which suggests a rise probably of 0.75 points in the coming months.