Norway’s central bank raised its key interest rate by half a percentage point on Thursday, saying “inflation was much higher than expected.”
The 1.75 percent rise in prices was more than expected as the bank forecast inflation at 6.8 percent in July.
He noted that the unemployment rate is very low, falling more than expected last month to 3.2 percent, and that activity in the Norwegian economy is strong.
Norges Bank said in a statement: “Rate hikes have been widespread in recent months and could see inflation remain high longer than previously thought. monetary policy.
He pointed out that “ongoing global price pressures will further accelerate price growth,” noting that “on the other hand, higher interest rates and higher inflation could cool the housing market and cap household consumption more quickly than currently appears. also the risk of a sharper slowdown in global growth.
Based on expectations and the balance of risk, the bank said it would likely raise its interest rate further in September.
Source: AP