Norway's central bank unexpectedly cuts interest rates by 25 basis points

The central bank of Norway (Norges Bank) has lowered its benchmark deposit rate by 25 basis points - to 4.25 percent from 4.50 percent, the bank said in a statement.

All analysts surveyed by Bloomberg expected the bank to leave interest rates unchanged at this meeting - at 4.50%.

This is the first interest rate cut in Norway after the COVID-19 pandemic.

The bank said interest rates would be cut further in 2025, to below 4.00 percent before the end of this year.

"If the Norwegian economy develops as expected, interest rates will be lowered further in the course of 2025," the bank said in a statement.

On Wednesday, the Riksbank, Sweden's central bank, lowered interest rates to 2.00 percent, and on Thursday the Bank of England will probably keep borrowing costs at the current level of 4.25 percent.

Norges Bank has repeatedly postponed the start of interest rate cuts made by global competitors at the time. (PAP Biznes)

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