COPENHAGEN, Denmark -- Norway’s central bank on Thursday raised its key policy interest rate by a quarter of a percentage point to 0.25%, citing the normalization of the economy that suggest “there is no longer a need to maintain the current degree of monetary accommodation.”

       The rate has been at 0% since May 7, 2020.

       “A normalizing economy now suggests that it is appropriate to begin a gradual normalization of the policy rate,” said Governor Oeystein Olsen.

       The Norges Bank said that “the reopening of society has led to a marked upswing in the Norwegian economy, and activity is now higher than its pre-pandemic level.” Although infection rates have risen after summer, “a high vaccination rate has reduced the need for COVID-related restrictions."

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

       The change is effective as of Friday.