Norway raises key interest rate again to fight inflation

Norway’s central bank says it's raising its key interest rate by a quarter-percentage point to combat high inflation. Norges Bank is hiking the rate to 4%, the highest level since 2008. It said Thursday that inflation — which reached 5.4% in July — ”has edged down but remains high and markedly above the target” of 2%. It added that “a somewhat higher policy rate is needed to bring inflation back to target.” The head of the bank says the rate would most likely be raised again next month. Central banks worldwide have been raising borrowing costs to target price spikes fueled by the economic rebound from the pandemic and then Russia’s war in Ukraine.