Signal of continued tightening from the Norwegian Central Bank, which increased interest rates

The Norwegian Central Bank lowered its policy rate to 4 percent, in line with expectations, and signaled a final increase for September. The Norwegian Central Bank, while continuing to tighten, signaled a final increase in September. The bank raised its policy rate by 25 basis points to 4 percent, in line with expectations. With the latest interest rate hike, the country's policy rate rose to its highest level since 2008. In line with estimates made in June, the bank stated that the interest rate "will most likely be increased further in September." The Norwegian Central Bank was one of the first developed country central banks to start raising interest rates after the pandemic, while the country's recent positive inflation outlook and recovery in its currency, the krona, had also attracted attention. According to Eurostat's harmonized figures, consumer prices in Norway increased faster than in the euro area and Scandinavian countries, while the core inflation rate fell as expected from last month's record level.