Norway central bank hikes rate by 25 basis points, will likely hike again

Norway's central bank raised its benchmark interest rate by 25 basis points (bps) to 2.75% on Thursday, as expected by economists surveyed by Reuters, and said it will likely hike again as inflation remains above its targets.

Of the 24 analysts polled in advance, all but one had anticipated a hike of 25 bps at Thursday's meeting, while one had bet on an unchanged rate. "The policy rate will most likely be raised further in the first quarter of next year," Norges Bank said in a statement.

The Norwegian currency, the crown, strengthened to 10.43 against the euro at 0904 GMT from 10.44 just before the rate announcement.