Norway CB cuts rates in surprise move

Norway's central bank cut its policy interest rate by 25 basis points to 4.25 per cent on Thursday and said there were more cuts to come due to a more benign inflation outlook, a decision that took most analysts by surprise and weakened the currency.

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"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 policy rate could be cut one or two more times by the end of the year, Governor Ida Wolden Bache later told a press conference, lowering borrowing costs to either 4.0 per cent or 3.75 per cent.