Norwegian Central Bank keeps benchmark interest rate unchanged, hinting at another possible rate hike later this year.

The Norwegian central bank maintained the benchmark interest rate unchanged, but attempted to pave the way for further policy tightening to alleviate the region's rising inflation pressures. The Norwegian central bank on Thursday kept the deposit rate at 4.25%, in line with expectations. Officials hinted that they will continue to follow up at the appropriate time after the rate hike last month, but did not specify a specific time. They expect a "slight increase" in borrowing costs compared to March and forecast rates to rise to "slightly above" 4.5% by the end of the year. "The latest information indicates that inflation pressures are slightly higher than our expectations," central bank Governor Ida Wolden Bache and other policymakers said in a statement. "If developments continue as currently assessed, the policy rate will be raised at a future monetary policy meeting."