Norges Bank raised its policy rate by 25 basis points to 4.50% on Sept. 24, saying it may tighten policy further if needed to return inflation to its 2% target within a reasonable time horizon. Governor Ida Wolden Bache said rates would likely remain elevated for some time, while the inflation outlook further ahead had not changed materially. The Norwegian crown strengthened to 10.76 per euro from 10.79 before the announcement. Core inflation stood at 3.0% year on year in August, below the bank's 3.3% forecast but still above target. Sixteen of 28 economists polled by Reuters had expected the increase, while most predicted 4.50% would be the peak rate. Norges Bank projected inflation would slow from next year and reach 2% in 2029, while the economy cools and registered unemployment rises slightly above pre-pandemic levels.