All 30 economists polled in advance by Reuters expected a 25-basis-point hike on Thursday, and a majority of participants had predicted that this would mark the peak of Norges Bank's two-year campaign of tightening.

"There will likely be one additional policy rate hike, most probably in December," Governor Ida Wolden Bache said in a statement.

The policy rate was forecast to stay around 4.50% through 2024, the central bank added.

Only five economists in the Reuters poll had expected rates to hit 4.50% this year.

The crown strengthened to 11.49 against the euro at 0820 GMT, from 11.52 just before the announcement.

Norway's annual core inflation, which excludes energy costs, stood at 6.3% in August, down from a June peak of 7.0%, and has remained above the bank's 2% target since February 2022.

In 2024, core inflation is now expected to decline to 4.7%, Norges Bank said, up from a previous forecast of 4.6% made in June.

"The outcome of this meeting was clearly on the hawkish side. Higher wage growth and higher inflation for longer are the key reasons behind the upward adjustment to the rate path," analysts at Nordea Markets said in a note.

Although weak by historical standards, the Norwegian crown has strengthened since June on a trade-weighted basis by about 6% against a broad basket of currencies.

Sweden's Riksbank earlier on Thursday raised rates by 25 basis points to 4.0% and said it expected to hike again, while the Swiss National Bank kept rates on hold but kept the door open to potential future tightening of policy.

The U.S. Federal Reserve held its benchmark overnight interest rate steady on Wednesday and stiffened a hawkish monetary policy stance that could lead to another hike later this year.

The European Central Bank raised its key interest rate last week to a record high of 4%, and signalled that was likely to be its final hike in a 14-month-long fight on inflation.

The Bank of England is expected to announce later on Thursday what could be its last rate hike of the cycle.