Norway’s central bank reduced its policy interest rate by 25 basis points (bp), marking the first cut in borrowing costs in five years, in an unexpected move.
Policymakers decided to cut interest rates to 4.25% at their meeting on Thursday, after keeping them unchanged at 4.5% in May, the highest level since 2008.
Of the 26 economists who participated in the poll conducted from 11 to 16 June, 23 expected the key rate to remain at 4.50%, while three expected a cut to 4.25%, according to Reuters.
This comes after Norges Bank policymakers postponed a long-planned monetary easing program in March due to a sudden rise in consumer prices.
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