Economics
Norway Seen Signaling Rate Cut as Sub-$40 Oil May Halt Growth
- 13 of 20 economist surveyed see rates on hold on Thursday
- Bank to indicate `high probability' of cut in March: Danske
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As the oil price rout has reached a new level of grimness, the question is whether the central bank of western Europe’s biggest crude producer will cut rates Thursday or lay in wait until early next year.
Norges Bank is closing in on the lower bound in rates after a series of preemptive cuts over the past year brought its benchmark to a record low of 0.75 percent. Now 13 of 20 economists surveyed by Bloomberg see the bank keeping rates unchanged in a decision scheduled for release at 10 a.m. The rest predict a 25 basis point reduction.