Norway's central bank raised its benchmark interest rate by 50 basis points (bps) on Thursday, as expected by most economists and said it will likely hike again in September after inflation soared well above forecast.

Norges Bank's monetary policy committee raised the sight deposit rate to 1.75% from 1.25%, exceeding its own forecast made in June of a hike to 1.50%. (Reporting by Victoria Klesty, editing by Terje Solsvik)