The rate hike – in line with what Governor Ida Wolden Bache flagged for in June – is the latest in a series of policy rate hikes in Norway since September 2021, when Norges Bank was one of the first central banks in the Western world to start tightening monetary policy due to post-pandemic inflation problems .
Like Sweden, Norway has imported a lot of inflation as a result of a sharp weakening of the Norwegian krone on the foreign exchange market. But the Norwegian krone has this summer recovered somewhat since the bottom quotation at the beginning of May and now costs 1:03 Swedish kronor. On May 2, the Norwegian krone was comparatively 95 öre – the lowest since the days of the banking crisis in the early 1990s.
Inflation in Norway was recently measured at 5.4 percent in July, which can be compared with 9.3 percent in Sweden.