Jabar Ekspres – Norway’s central bank has decided to raise its policy rate by 0.25 percentage points to 4.0 percent, in an effort to bring inflation down to the target level.
“In July, consumer prices were 5.4 percent higher than one year earlier. Excluding energy prices, inflation now stands at around 6.5 percent, which is well above our target,” Bache said.
“If the (Norwegian) krona proves weaker than previously projected or pressures in the economy persist, higher policy rates may be needed to bring down inflation,” Bache said.