Norway’s central bank raises key interest rate

COPENHAGEN, Denmark (AP) — Norway’s central bank has decided to raise its key policy rate by 0.25 percentage points to 1.25%.

Norges Bank says economic growth in the Scandinavian country “is solid, and capacity utilization is estimated to be somewhat above a normal level. Underlying inflation is a little higher than the inflation target.”

In Thursday’s statement, it noted that “trade tensions are a source of substantial global uncertainty.”

Governor Oeystein Olsen said a further increase could be delivered in the course of 2019.

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The rate increase comes as several major central banks, including those of the U.S. and eurozone, are moving toward cutting rates instead.

Oil-rich Norway is not part of the European Union, though it has a close economic relationship with the bloc.

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