Norway and Iceland raise rates as inflation stays high
Iceland’s governor warns of wage-price spiral and says economy is overheating
The central banks of both Norway and Iceland raised interest rates and forecast they would tighten policy further to deal with rising inflation.
Norway: Norges Bank raised its key rate by 25 basis points on March 22, to 3%, resuming a cycle of increases it had paused in January.
Its monetary policy committee has raised rates nine times over the last 18 months, for a total of 300bp. In its statement, the committee cited above-target inflation, wage growth and a growing economy. Norway’s year-on
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