Norway central bank hikes key policy interest rate to 0.75%

COPENHAGEN, Denmark (AP) — Norway’s central bank has raised its key policy interest rate from 0.5% to 0.75% , saying the war in Ukraine has led to heightened uncertainty.” Norges Bank said Thursday it was concerned the war could result in weaker-than-expected global growth amid rising inflation.” The bank also cited “the risk of accelerating price and wage inflation as a result of capacity constraints in the economy and persistent global price pressures.” The central bank’s deputy governor says the policy rate will most likely be raised further in June. Norges Bank said the policy rate forecast is higher than it was in December Report and indicates an increase to around 2.5% at the end of 2023.