COPENHAGEN, Denmark (AP) — Norway’s central bank has decided to raise its key policy rate by 0.25 percentage points to 1.25%.

Norges Bank says economic growth in the Scandinavian country “is solid, and capacity utilization is estimated to be somewhat above a normal level. Underlying inflation is a little higher than the inflation target.”

In Thursday’s statement, it noted that “trade tensions are a source of substantial global uncertainty.”

Governor Oeystein Olsen said a further increase could be delivered in the course of 2019.

The rate increase comes as several major central banks, including those of the U.S. and eurozone, are moving toward cutting rates instead.

Oil-rich Norway is not part of the European Union, though it has a close economic relationship with the bloc.