The Norwegian crown surged on Thursday after the central bank raised its benchmark interest rate by 50 basis points (bps), more than expected by a majority of economists surveyed by Reuters, and said it aimed for another hike in August.

In attempt to curb inflation, Norges Bank raised interest rates to 3.75%, sending the crown more than 1% higher both against the euro and dollar.

The Norwegian crown rose 1.3% against the dollar to 10.5100, marching towards a six-week high touched last week.

Versus the euro, it rose 1.2% to 11.5600.

Norges Bank early last month raised the policy rate by 25 bps and added it was likely to hike again in June.

Economists polled by Reuters expected a 25 bps move, but a minority of participants in the survey predicted Norges Bank would hike by 50 bps amid higher than expected growth in consumer prices and a brighter outlook for many Norwegian companies.

Norwegian 3-year government bond yield rose 13 bps to 3.94%. (Reporting by Joice Alves; Editing by Amanda Cooper)