COPENHAGEN, Denmark (AP) — Norway's central bank has raised its key policy rate by a quarter of a percentage point to 0.75 percent — its first increase in seven years.

The Norges Bank said Thursday "the upturn in the Norwegian economy continues" and that "if the key policy rate is kept at the current level for too long, price and wage inflation may accelerate, and financial imbalances build up further."

Governor Oeystein Olsen also said a further increase could be delivered in the first quarter of 2019.

Oil-rich Norway is not part of the European Union, though it has a close economic relationship with the bloc.

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