Norway has become the first European country to raise its interest rates since the beginning of the global financial crisis.
The central bank raised the cost of borrowing to 1.5% from 1.25%. The move was widely-expected.
The bank said the increase was needed because inflation was higher than expected and unemployment was "considerably lower than previously projected".
The reserve Bank of Australia raised its interest rate to 3.25% from 3% on 6 October. Australia was the first in the G20 to increase rates since the global economic crisis.
Norwegian central bank governor Svein Gjedrem said activity in the economy had picked up more rapidly than expected.
He added that rates would continue to rise "gradually".
