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UPDATE 3-Norway holds rates at zero, but draws hike much closer

Says in statement that the first hike seen in H1 2022 Hike in Q1 2022 “probable” -governor Norway’s currency strengthens vs euro (Adds interview with governor, updates currency) OSLO, Dec 17 (Reuters) - Norway’s central bank kept its policy interest rate at a record-low zero percent on Thursday, as expected, while warning that a rate increase may come earlier than it had foreseen as the global economy recovers from the COVID-19 pandemic. Norges Bank said it had pencilled in an increase for the first few months of 2022, six months or more ahead of its previous prediction, pushing up the value of the Norwegian crown against the euro and dollar.

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