OSLO (Reuters) – The interest rates in Norway are expected to increase amid strong domestic economic growth and a buildup in pressure within the economy. But, the central bank governor of Ukraine said that there is uncertainty in the world outlook due to the ongoing war in Ukraine.

Ida Wolden Bache from Norges Bank stated that “economic activity in Norway is high” and warned of the potential for inflation.

The policy rate has been rising, therefore. However, forecasts can be subject to uncertainties. She said that if the economy develops in a different way than expected, then the path of the policy rate may change.”

Norway may face more difficult monetary policy tradeoffs in the future, she said.

Bache stated that “But, we have a clear mandate and will continue to work to fulfill the mandate to keep inflation low and stabilize and contribute to economic stability over the coming years.”

Norges Bank announced last month that it will raise rates in the next year at a quicker pace than originally planned to limit inflation and keep an eye on a growing economy.