Business News
Norwegian central bank cuts key lending rate to 1.75 per cent
Dec 14, 2011, 14:07 GMT
Oslo - Norway's central bank cut its benchmark interest rate by 50 points to 1.75 per cent on Wednesday, citing increased turbulence in financial markets and lower growth in the euro area.
The board of governors hoped the move would 'dampen the impact on the Norwegian economy,' deputy governor Jan F Qvigstad said in a statement.
In its assessment of the Norwegian economy, the central bank said inflation was low.
Economic activity was described as robust, driven by investments in the petroleum industry and housing construction, but 'a number of indicators suggest lower growth ahead,' the bank said.
The rate cut was effective as of Thursday. Norges Bank raised the interest rate to 2.25 per cent in May.
Norway is not a member of the 27-nation European Union.
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