Norway Raises Key Policy Rate By 25 Bps To 2.25%
12 May 2011
The Norwegian central bank raised its benchmark interest rate for the first time in a year on Thursday citing the need to stabilize activity and inflation. The Norges Bank increased the key policy rate by 25 basis points to 2.25 percent. It was the first hike since a quarter point raise in the rate last May. "The upturn in the Norwegian economy has gained a firm footing," Norges Bank Governor Oystein Olsen said. "The consideration of stabilizing activity and inflation somewhat further ahead suggests that the key policy rate should be raised." Norges Bank's executive board decided in March that the key policy rate should be in the range of 1.75% to 2.75% in the period before the publication of the next monetary-policy report on June 22, unless the Norwegian economy is exposed to new major shocks, the central bank said.