Norges Bank Chief Sees Likely Hike to 3.25% in May

The transcript discusses a unanimous decision to raise policy rates by 25 basis points, with future hikes likely needed to curb inflation. The kruna's depreciation is a factor in this decision, as it affects inflation in a small open economy. The transcript also highlights the uncertainty in the currency's future outlook, which could necessitate further rate increases.

What was the unanimous decision made regarding policy rates?

• To decrease rates by 25 basis points

• To maintain current rates

• To raise rates by 25 basis points

• To raise rates by 50 basis points

Why are more interest rate hikes likely needed according to the first section?

• To curb inflation

• To boost economic growth

• To increase exports

• To stabilize the currency

How does the kruna's depreciation affect inflation in a small open economy?

• It has no effect on inflation

• It helps reduce inflation

• It contributes to higher inflation

• It stabilizes inflation

What is the main reason for considering further interest rate hikes?

• To improve trade balance

• To reduce government debt

• To counteract the kruna's depreciation

• To increase foreign investment

What could lead to a higher interest rate in the future?

• Increased foreign reserves

• Stable kruna value

• A weaker kruna than projected

• A stronger kruna than projected