Norway and Iceland raise rates as inflation stays high

Iceland’s governor warns of wage-price spiral and says economy is overheating

Norges Bank HQ, Oslo
Norges Bank headquarters, Oslo
Photo: Espen Schive

The central banks of both Norway and Iceland raised interest rates and forecast they would tighten policy further to deal with rising inflation.

Norway: Norges Bank raised its key rate by 25 basis points on March 22, to 3%, resuming a cycle of increases it had paused in January.

Its monetary policy committee has raised rates nine times over the last 18 months, for a total of 300bp. In its statement, the committee cited above-target inflation, wage growth and a growing economy. Norway’s year-on

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