Norway has become the first major European country to increase interest rates, with a hike bringing the rate from zero to 0.25%. The Norwegian central bank has also said it plans to raise rates further to 0.5% in December, and three more times in 2020 to an expected rate of 1.25%. Reasons given were the continued economic recovery in Norway, and more broadly across the continent, but also the desire to begin the gradual normalization of monitory policy in general. The move is perhaps signalling the shape of things to come across the continent, particularly if inflation is not as transitory as the European Central bank currently theorizes. The hike strengthened the Norwegian Crown, as buyers came in to take advantage of higher rates, and with expectations of higher rates next year also acting as a tailwind for the currency.