Norway hikes interest rates, with more to come

Norway's central bank raised its benchmark interest rate on Thursday as expected, and said more hikes will follow as it joins a short but growing list of nations moving away from emergency-level borrowing costs.

Norges Bank's monetary policy committee raised the sight deposit rate to 0.25% from a record low of zero, as forecast unanimously in a Reuters poll of analysts and in line with the central bank's own plan. "Based on the committee's current assessment of the outlook and balance of risks, the policy rate will most likely be raised further in December," Norges Bank Governor Oeystein Olsen said in a statement.

The monetary policy committee said its forecast for four more hikes by the end of 2022, to a rate of 1.25%, had become even more likely. Norway's currency, the crown, strengthened to 10.0786 against the euro at 0808 GMT from 10.1031 just before the announcement.