Norway Central Bank Surprises with Rate Hike to 4.5% to Fight Inflation
• Norway's central bank unexpectedly raised its policy rate by 25 basis points to 4.50% on Thursday to combat high inflation
• The rate hike surprised economists - 15 of 27 polled expected rates to remain unchanged
• The bank says rates will likely remain around 4.5% until late 2024 before gradually falling
• The bank raised its inflation forecasts for 2024 and 2025, expecting elevated rates to persist
• The Norwegian krone currency strengthened against the euro following the surprise rate hike