Norges Bank on Thursday became the first major Western central bank to raise interest rates after the start of the coronavirus pandemic.

After cutting rates three times in 2020 due to the economic fallout from the crisis, Norway‘s central bank unanimously decided to raise rates to 0.25% instead of zero.

“A normalizing economy now suggests that it is appropriate to start a gradual normalization of the policy rate,” Governor Oystein Olsen said in a statement on Thursday.

The bank said another hike is likely in December.

The Norwegian currency hit its highest levels since June against the euro and gained 0.7% against the US dollar.

The rate hike comes as many central banks contemplate similar measures against a backdrop of solid growth and skyrocketing inflation. In the United States, Federal Reserve officials reiterated on Wednesday that a reduction in bond purchases would “soon.” The European Central Bank recently slowed down its bond purchases, but a real rate move is likely to be a long way off for both banks.

“The reopening of the company has resulted in a sharp recovery in the Norwegian economy and activity is now above its pre-pandemic level. Unemployment has fallen further and capacity utilization appears to be close to a level normal, ”the bank added in the statement.