Action taken a short while ago and posting for info. Not expected and markets taken aback at extent of easing bias

  • the krone depreciation has pushed up consumer price inflation. Low wage growth is keeping down cost growth, and inflation will edge down as the effects of the krone depreciation unwind.

  • Growth in the Norwegian economy is likely to remain low for a longer period than projected earlier owing to the fall in oil prices through summer. Oil investment is expected to fall to a further extent than projected in June, and lower demand for goods and services from the petroleum sector will reduce activity in other parts of the economy

  • Norges bank reserve rate, set to minus 0.25% for first time

"The current outlook for the Norwegian economy suggests that the key policy rate may be reduced further in the coming year"

  • chance of another rate cut in the next 12 months is greater than 50%
  • modest probability of another rate cut this Autumn

Full press release from Norges Bank here Norwegian krone down to 13 year lows vs USD and 3% lower vs euro