© Reuters. FILE PHOTO: People go about their day near Norway’s central bank building in Oslo, Norway May 31, 2017. REUTERS/Ints Kalnins
OSLO (Reuters) – Norway’s central bank raised its key policy rate by 50 basis points, in its largest single hike in two decades, as there is a need to bring inflation down to the level targeted by the central bank, of 2.0%, the central bank’s head said on Thursday.
“There is need for a clearly higher rate to stabilise inflation around the target,” Norges Bank Governor Ida Wolden Bache told a news conference.
Norway central bank chief: rate hike needed to bring down inflation