The executive board of Norges Bank, the central bank of Norway, has raised the key policy rate by 0.25% to 1.50%, in stark contrast to most other European countries which have been opting to hold rates steady in the face of the continued global downturn.

In their statement, the board suggested domestic economic activity had been increasing at a faster rate than anticipated, whilst inflation has also been running ahead of expectations. The board has said that rates will be kept within a band of 1