Surprise Interest Rate Cut in Norway
December 11, 2014
Norway’s key central bank interest rate was cut unexpectedly today by 25 basis points to 1.25%. The previous change was also a 25-bp cut but taken 33 months ago, and the first easing, a rate cut of 50 basis points, occurred way back in December 2011. A statement released by Norges Bank today speaks of more uncertain global growth prospects, the big decline in oil prices (Norway is a producer), lower capacity usage, and marked depreciation in the krone that is helping inflation to rise back to the target officials seek. The statement predicts the key interest rate will stay at 1.25%, or go perhaps lower, over the coming two years.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Norway
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