Norway cuts interest rates further

Norges Bank cut its key interest rate on Thursday by 0.25 per cent to a new record low of 1.75 per cent to spur inflation in the oil-dependent economy. It was the tenth time that Norway has cut its main rate since it was at 7 per cent in December 2002.

According to Norges Bank's assessment, with a sight deposit rate of 1.75 per cent at present, the probability that inflation two years ahead will be lower than 2 ½ per cent is greater than the probability that it will be higher.

In a statement No