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
