Norway's central bank governor said interest rates are nearing a peak after Thursday's hike to 4.0%.

"We know that many people are now wondering whether the current monetary policy tightening cycle is nearing the end," Norges Bank Governor Ida Wolden Bache told a press conference.

"The answer is that we have come a long way, but we believe that a somewhat higher policy rate will be needed to bring down inflation towards the target within a reasonable horizon," she said. (Reporting by Gwladys Fouche, writing by Terje Solsvik, editing by Victoria Klesty)