NEWS

Norway’s unemployment fell more than expected, cementing the case for Norges Bank to begin post-crisis interest rate hikes later this month.

The seasonally-adjusted registered jobless rate declined to 2.7% in August, compared with the median estimate of 2.9% in a Bloomberg survey of economists that was in line with the central bank’s expectation published in June.

Norges Bank is moving ahead of most of the rich world in unwinding the crisis policies triggered by the pandemic as it prepares for a series of quarterly interest-rate increases from zero. It is expected to announce the first on Sept. 23. While unemployment trailed its forecasts for most of this year, labor market activity is now accelerating.

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