NEWS

Norway’s central bank has signaled that it plans to take the plunge by making the country the first developed nation to shift from pandemic-era policy and raise interest rates by the end of the year.

The oil-rich country’s central bank, Norges Bank, said Thursday that a faster-than-expected pickup in global economic activity coupled with notable growth in domestic house prices have prompted it to advance plans to boost interest rates from zero.

The Norwegian krone briefly strengthened, rising 0.6% against the euro and 0.7% against the dollar, before falling back as benchmark oil prices tanked on concerns of longer-running energy demand shocks. Investors and analysts are expecting the currency to strengthen further this year. On Tuesday, it depreciated against the dollar.

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