Norway central bank raises key rate to fight inflation

COPENHAGEN, Denmark (AP) — Norway’s central bank has raised its key interest rate by a quarter-percentage point, saying the move was “still needed to dampen inflation.” Norges Bank said inflation has “risen rapidly” and “is markedly above target,” reaching 6.5% in November. The hike it made is a slower pace than the U.S. Federal Reserve took Wednesday and Swiss National bank took a day later. The European Central Bank and Bank of England also are expected to raise rates by half a point Thursday. In Norway, the bank noted that although the economy is faring well, it’s still slowing and higher inflation is reducing people’s purchasing power. It says another rate hike is likely early next year.