norways central bank raised its key policy rate on thursday and said that it now expects the rate to peak at a higher level than previously anticipated as inflation remains markedly above target norges bank increased its key policy rate by 25 basis points to 300 as expected and said that despite considerable uncertainty about future economic developments if things turn out as it now expects the policy rate will be raised further in may the bank said that growth in the norwegian economy is slowing but economic activity remains high the labor market is tight and wage growth is on the rise the central bank reaffirmed its stance that the future policy rate path will depend on economic developments noting that if the krone proves weaker than projected or pressures in the economy persist a higher policy rate than currently projected may be needed to bring inflation down to target alternatively if inflation falls faster or unemployment rises more than projected the policy rate may be lower than projected norges bank now expects the policy rate to increase to a peak of around 35 in the summer having previously seen a top of around 31 before gradually falling to around 25 by 2027