Norway Becomes First European Country To Raise Interest Rates

The Telegraph (UK) ^ | 10-28-2009

[blam]

Norway Becomes First European Country To Raise Interest Rates

Norway has become the first country in Europe to raise interest rates since the start of the financial crisis as its economy recovers from a shallow downturn.

Published: 5:00PM GMT 28 Oct 2009

Norway's economy has been buoyed by its vast offshore oil and gas sector.

Norges Bank, the country's central bank, increased its deposit rate by a quarter point from record lows to 1.5pc on Wednesday.

The rise will offset a significant fiscal stimulus package introduced by the government at the height of the financial crisis.

Norway, buoyed by its vast offshore oil and gas industry, has had a relatively mild recession compared with other Scandinavian countries.

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[Robert357]

And so the era of hyper-inflation that Ronald Regan stopped; starts all over again due to government spending and borrowing across the globe.