OSLO- Norway’s central bank cut its key policy rate to 1.0% from 1.5% in a bid to alleviate the economic impact from the coronavirus outbreak, in a surprise announcement on Friday.
“There is considerable uncertainty about the duration and impact of the coronavirus outbreak, with a risk of a pronounced economic downturn,” the bank’s monetary policy committee said in a statement.
“The committee is monitoring developments closely and is prepared to make further rate cuts,” it added.
The bank had been due to announce its next rate decision on March 19.
The so-called countercyclical buffer of the banking industry will also be cut, to 1.0% from 2.5%, making it easier for banks to keep lending, the central bank said.
(Content and photos syndicated via Reuters)