Norway's central bank surprised markets by hiking its benchmark rate 25 basis points to 5% on Wednesday.
The central bank's rate-setting board was widely expected to hold the benchmark sight deposit rate.
The increase was a response to rising cost inflation, the central bank said. It added that there were "prospects of a further pick up in price inflation", suggesting that further tightening could follow this decision.
It said it would be "mindful" of the impact of higher rates on the currenc