According to Bloomberg, Norway’s central bank raised interest rate first time in seven years, as policy makers in the richest country of Scandinavia started reducing stimulus of the economy after worst oil crisis.

Norge Bank raised interest rate by quarter point to 0,75%. Bank also announced that it plans to raise rate once again in the beginning of next year.

Krone fell by 0,8% to 9,591 per euro.

Tightening of monetary policy was planned since June among reduction in unemployment level below 4%, growing oil prices and inflation reaching the target.

Oil price gains helped recovery of key sector of Norway’s economy and lead to increase in investments. Government started putting money back into wealth fund first time since the end of 2015.

However, bank is taking careful position in regards to future hikes, as labor market and economy as a whole did not grow as fast as was expected earlier. Wage gains will also be below forecasted.