Norway's central bank raised its key policy rate by 50 basis points (bps) to 3.75% in a bid to curb inflation, more than expected by a majority of economists surveyed by Reuters, and said it aimed for another hike in August.
Of the 32 economists polled in advance, 24 had anticipated an increase of 25 bps on Thursday while eight had bet on an increase of 50 bps.
The central bank predicted the policy rate would rise to 4.25% during the autumn.
"If we do not raise the policy rate, prices and wages could continue to rise rapidly and inflation become entrenched," Norges Bank Governor Ida Wolden Bache said in a statement.
The Norwegian currency, the crown, strengthened to 11.55 against the euro from 11.69 just before the announcement.
In May , Norges Bank said it would "most likely" hike again in June, and official data has since shown higher-than-expected growth in consumer prices and a brighter outlook for many Norwegian companies.
