OSLO, Norway (AP) — Norway's central bank has hiked its key interest rate by a quarter of a percentage point to 2.25 percent, for the first time since May last year.

Norges Bank Governor Oeystein Olsen says the widely expected increase was made to help stabilize "activity and inflation" as the oil–rich country's economy keeps growing stronger.

He notes inflation is currently low, but that there are signs it could pick up during the year.

Norway is not a member of the EU or the eurozone, but Thursday's lift follows April's move by the European Central Bank to hike its rate to 1.25 percent from 1 percent.