Norway yesterday became the first western European country to raise interest rates since the financial crisis as its central bank reported “signs of renewed growth” in the global economy.
The Norges Bank lifted its main rate by 25 basis points to 1.5 per cent and signalled more increases ahead in a move that highlighted the shift towards higher official borrowing costs as the world economy stabilises.
The decision, which had been widely expected, means three of the world's leading central banks have now embarked on monetary tightening, following rate increases in Israel in August and Australia earlier this month.
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