Norway raises key interest rate to 4.50%, may hike further

The announcement was in line with what analysts had expected on average, according to a compilation of forecasts by the Bloomberg news agency.

"Inflation has been above target for several years. By raising the policy rate, we are helping to reduce inflation. It will likely be necessary to keep the policy rate up for a while," says Norway's central bank governor Ida Wolden Bache in a comment.

The bank may raise the interest rate further if necessary, she adds.