Norway Cuts Rate by Half Point as Euro Crisis Hurts Growth

Norway’s central bank slashed its benchmark interest rate by half a percentage point as the euro area’s debt crisis saps economic growth in the world’s second-wealthiest nation.

“The turbulence in financial markets has intensified and external growth is now expected to be clearly weaker, particularly in the euro area,” Deputy Governor Jan F. Qvigstad said today in Oslo. “In order to guard against an economic setback and even lower inflation, we are of the view that a reduction in the key policy rate is now appropriate.”