Novergia: central bank raises rates by 50 basis points

The Central Bank of Norway raised key interest rates by 50 basis points and signaled a probable further hike in September to counter the surge in inflation. The Norges Bank deposit rate rose to 1.75% from 1.25%. In June, the central bank had anticipated its intention to raise rates this month by 25bps. Norwegian inflation reached 4.5% per annum in July, up from 3.6% in June.