Rates: Norway raises its rates by 50 basis points!

(Boursier.com) — Norway surprises… on the rise. Norges Bank’s Monetary Policy and Financial Stability Committee raised its key rate by 50 basis points to 3.75%. The current assessment by the Outlook and Balance of Risks Committee implies that the key rate will most likely be raised further in August, notes Norges Bank. The market was expecting a tightening of 25 basis points. “If we don’t raise the policy rate, prices and wages could continue to rise rapidly and inflation take root. It may then become more costly to bring inflation down again,” says Governor Ida Wolden Bache.