In Thursday's statement, it noted that "the foreign interest rates are very low, and there is considerable uncertainty surrounding global growth prospects," suggesting "a cautious approach to interest rate setting."

Governor Oeystein Olsen said "the policy rate will most likely remain at this level in the coming period." The rate change, effective from Friday, is the fourth raise this year. Oil-rich Norway is not part of the European Union, though it has a close economic relationship with the bloc.