Norway’s central bank raised borrowing costs to the highest level since the 2008 financial crisis and signaled it still plans another quarter-point hike in the current tightening cycle, Ednews informs referring to Bloomberg.
Norges Bank lifted its key deposit rate on August 17 by 25 basis points to 4%, the 12th increase since September 2021, as forecast by all analysts in a Bloomberg survey. It said the rate “will most likely be raised further in September” but gave no new clues on subsequent steps.
The future outlook is also murky in part because the central bank gave no updates to any of its estimates on August 17, in line with its practice for so-called interim meetings. It has previously forecast a peak in borrowing costs at 4.25% later this year.