Norway raises rates as expected, sees further hike this year

Norwegian flag in front of the city hall building in Oslo.
@ Didier Marti | Moment | Getty Images

Norway's central bank raised its main interest rate on Thursday, as expected, and reiterated plans to hike rates later this year, while the outlook for the longer term had softened.

The bank raised its key policy rate to 1.0 percent from 0.75 percent previously, in line with the forecast of 23 out of 26 economists in a Reuters poll.