Norway Cuts Rate and Signals More Easing Ahead Amid Oil Plunge
- Norges Bank sees key rate bottoming at 0.2% in 1Q 2017
- Norway says it will proceed with caution in rate setting
Olsen Says Zero Is Not a Lower Bound for Norway
This article is for subscribers only.
Norway’s central bank cut its benchmark interest rate to a record low and signaled it’s prepared to ease policy further to ward off a recession in western Europe’s biggest crude oil producer.
The overnight deposit rate was lowered by 25 basis points to 0.50 percent, the Oslo-based central bank said on Thursday. The decision was predicted by 18 of 20 economists surveyed by Bloomberg. The bank predicted that its rate will bottom at 0.2 percent in the first quarter next year.