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POST TIME: 20 September, 2019 00:00 00 AM
Norway hikes interest rates
AFP, Oslo

Norway hikes interest rates

The Bank of Norway hiked yesterday its main interest rate by 0.25 percentage points to 1.5 per cent in a move running counter to most other central banks which are lowering rates. But after its fourth hike in the space of a year, the Bank of Norway nevertheless hinted that interest rates have reached their peak for the time being.

"The Executive Board's current assessment of the outlook and balance of risks suggests that the policy rate will most likely remain at this level in the coming period," said the cental bank's governor, Oystein Olsen. Economists had been divided about whether the central bank should hike rates further given the darkening prospects for the global economy due to the trade spat between the United States and China, as well as the possibility of a no-deal Brexit.

But Norway's economy has held up well thanks to a rebound in investments in the oil and gas sector. Growth reached 0.7 per cent in the second quarter excluding the oil and gas sector and maritime transport.