Norway's central bank cut its key interest rate yesterday by 25 basis points to a new record low 2.0 per cent to spur sluggish inflation in the oil-backed economy. The widely forecast cut in the deposit rate was the ninth since December 2002 when the rates were 7.0 per cent.
It brings rates in Norway, which is not a member of the European Union, into line with the euro zone.
The central bank also signalled that more rate cuts were likely by saying that core inflation was more likely to be below its 2.5 per cent target in two years time than above the goal if rates stay unchanged at 2.0 per cent.
Source: Aftenposten
