Economics
Norway Raises Benchmark Rate for First Time in Seven Years
- Move was predicted by all 23 economists in a Bloomberg survey
- Rate path unexpectedly cut amid concerns on domestic growth
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Norway’s central bank raised interest rates for the first time in seven years as policy makers in Scandinavia’s richest economy start unwinding the record stimulus put in place to fend off the worst oil crisis in a generation.
Norges Bank increased its benchmark rate by a quarter point to 0.75 percent, as predicted by all 23 economists surveyed by Bloomberg before the decision. The bank flagged it will raise rates again at the start of next year, but also unexpectedly lowered its longer term projections. The krone slid 1 percent to 9.6148 per euro as of 11:03 a.m.