UK central bank predicts economy shrank for second quarter in a row, after shops closed and many stayed at home for Queen Elizabeth II’s state funeral
Norway’s central bank has joined the rate-hikers.
The Norges Bank has lifted its benchmark interest rate by 50 basis points, to 2.25%, and signalled that the policy rate will probably be raised further in November.
Many will be facing a squeeze on finances given the rapid rise in prices at the same time as the policy rate is being raised.
But a faster rate rise now reduces the risk of inflation becoming entrenched at a high level and thereby the need for a sharper tightening of monetary policy further out.
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