Norway’s Krone Sinks as Norges Bank Signals Rate May Be Cut

Norges Bank signaled a potential interest rate reduction later this year as the krone’s appreciation to a record cooled growth and inflation in Europe’s second-richest nation.

The krone slumped 0.9 percent to 7.5095 per euro as of 11:49 a.m. in Oslo, the biggest loser among the 17 major currencies tracked by Bloomberg. Policy makers predicted the overnight deposit rate will average as low as 1.40 percent in the third quarter, after keeping it unchanged at 1.5 percent for a sixth consecutive meeting.