Norges Bank Raises Key Rate by 0.25% to Combat Inflation, First European Country Since Middle East War

Central News Agency (CNA) Oslo, 7th, comprehensive foreign news – Norges Bank today decided to raise its key interest rate by 0.25% to 4.25%, becoming the first European country to take interest rate hike action since the outbreak of the Middle East war. Agence France-Presse reported that Norges Bank Governor Ida Wolden Bache stated in a statement: 'Inflation is too high and has been above the target level for many years.' Norway's core inflation rate in March reached 3.0%, significantly higher than the official target of 2.0%. The core inflation rate is Norges Bank's preferred economic indicator. Norges Bank also stated that 'significant uncertainty still exists regarding future economic developments,' pointing out that rising oil and gas prices due to the Middle East war could further push up inflation. The United States and Israel jointly launched an attack on Iran on February 28, leading to the closure and blockade of the strategic Strait of Hormuz in the Persian Gulf, causing global oil prices to surge. Recently, with a glimmer of hope for a peace agreement, oil prices have fallen back, with Brent crude dropping below $100 per barrel. In addition, the Riksbank (Sweden's central bank) today announced that it would keep its key interest rate unchanged at 1.75%, stating that there is 'still room to wait for the situation regarding the war's impact and related supply shocks to become clearer.' (Edited by Liu Shu-chin) 1150507. Stand with facts, your sponsorship is the power to protect press freedom. Download CNA's 'First-hand News' APP to stay updated. The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.