Norges Bank raises rate as Riksbank holds amid Middle East uncertainty
Updated
Updated · The Wall Street Journal · May 7
Norges Bank raises rate as Riksbank holds amid Middle East uncertainty
7 articles · Updated · The Wall Street Journal · May 7
Norway lifted its key rate to 4.25% from 4%, while Sweden kept its policy rate at 1.75% in Stockholm decisions on Thursday.
The Riksbank said it was ready to act quickly if the conflict lifts inflation or hurts growth, while Norges Bank cited core inflation at 3.0%, above target for more than four years.
Sweden has now held rates steady for five meetings as inflation falls and the economy stutters, while Norway's latest move aligns with earlier forecasts for rates between 4.25% and 4.5% this year.
Why did Norway hike interest rates to fight inflation while neighboring Sweden held firm, fearing a recession?
As Nordic neighbors diverge on rates, whose economy will prove more resilient to the escalating Middle East conflict?