OSLO, Sept 26: The Norwegian central bank said on Wednesday it had raised its key interest rate a quarter of a point to 5.00 per cent to prevent an overheating of the economy, bucking a trend seen in other Western countries.

The increase, the sixth since the start of the year, was motivated by the fact that “growth in the economy has been stronger than expected” and that inflation has picked up, the governor of the Bank of Norway, Svein Gjedrem, told reporters.

Norway’s economy, rich in oil and gas resources, has so far remained unaffected by the US subprime mortgage woes that have recently shaken global markets.

The bank’s decision runs counter to the trend seen in other Western countries.—AFP