Surprising Rate Cut by Norway’s Central Bank Signals Possible Further Reductions

Reported about 19 hours ago

Norway's central bank unexpectedly lowered its policy interest rate by 25 basis points to 4.25% on Thursday, citing a more favorable inflation outlook and hinting at potential future cuts. This decision surprised economists, leading to a temporary weakening of the Norwegian crown. The governor indicated that rates could drop further to 4.0% or 3.75% by year-end, with projections suggesting a target rate of around 3% by the end of 2028. The move, praised by Prime Minister Jonas Gahr Stoere ahead of upcoming elections, contrasts with the actions of other Western central banks.

Source: YAHOO

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