On Wednesday, Norges Bank raised interest rates again as it looks to keep inflation from becoming entrenched at a high level. The central bank increased borrowing costs by 50 basis points to 2.25 per cent, asserting that its policy of raising rates throughout 2022 is beginning to have a tightening effect on the Norwegian economy.

The central bank’s monetary policy committee increased the sight deposit rate to 2.25 per cent from 1.75 per cent, indicating in August that a September hike was likely, but without indicating by how much. The bank said that this might suggest a more gradual approach to policy rate setting ahead.

Established in 1816, Norges Bank is the central bank of Norway. Headquartered in Oslo, it manages the Government Pension Fund of Norway, a stabilisation fund that is said to be the world’s largest sovereign wealth fund.
The Bank had predicted that any future rate hikes would depend on the state of the economy. However, it added that its projections are more uncertain than normal.