Norway raises rates by 25 basis points

The Central Bank of Norway's rate-setting executive board voted on Wednesday to increase its benchmark sight deposit rate by a quarter of a percentage point to 5.25%.

"Inflation is low but rising, and this is why we are raising the key policy rate. Growth in the Norwegian economy has been stronger than expected," said Svein Gjedrem, the governor of the central bank. "Demand for labour is rising rapidly, and household consumption has increased more than expected."

The board said it had consider