Norway central bank cuts rates in surprise move
"The economic outlook is uncertain, but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of 2025," Norges Bank said in a statement.
The Norwegian crown currency weakened to 11.55 against the euro by 0805 GMT, from 11.48 just before the announcement.
Norges Bank in May maintained its interest rate at 4.50%, the highest level since 2008, after it postponed in March a long-planned monetary easing due to an unexpected rise in consumer prices.
Of the 26 economists in the June 11-16 poll, 23 predicted Norges Bank's key interest rate would stay at 4.50% on Thursday, while three expected a cut to 4.25%.
"Inflation has declined since the monetary policy meeting in March, and the inflation outlook for the coming year indicates lower inflation than previously expected," Norges Bank Governor Ida Wolden Bache said in a statement.
"A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary," she added.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
16 minutes ago
- Bloomberg
Vietnam's Growth Surges as Buyers Race to Beat Trump Tariffs
Vietnam's growth accelerated in the second quarter as foreign buyers raced to avoid threatened tariffs of as much as 46% on sales to the US. Gross domestic product rose 7.96% in the April-June period from a year earlier, according to data from the National Statistics Office in Hanoi on Saturday. That's faster than the 6.85% median estimate in a Bloomberg survey of eight economists, and a revised 7.05% expansion in the first quarter.

Wall Street Journal
33 minutes ago
- Wall Street Journal
The Warning Signs for Russia's Economy Are Flashing Red
Russia's sanctions-defying economy, propelled higher by the Ukraine war, is suddenly coming back down to earth. Fueled by massive military spending and steady oil exports, Russia recorded some of the highest growth rates among major economies over the past two years. But in recent weeks economic indicators have been flashing red: Manufacturing activity is declining, consumers are tightening their belts, inflation remains high and the budget is strained.

Wall Street Journal
4 hours ago
- Wall Street Journal
To Understand the Economy, This Fed President Is Ditching His Desk
DURHAM, N.C.—Sitting around a table with 15 local business leaders, Tom Barkin peppered them with questions like an economic detective. Are you planning to expand or shrink your workforces? Are you making new investments or pulling back? When the conversation turned to inflation, the Richmond Fed president extracted an uncomfortably honest answer about how President Trump's tariffs have some firms thinking about their power to raise prices.