FXStreet (Edinburgh) – In line with market expectations, the Norges Bank has cut its benchmark rate by 25 bp to 1.00% at today’s meeting.
The Board justified the decision after developments in the domestic economy ‘have been slightly weaker than expected and the economic outlook has deteriorated somewhat’.
The NB stressed that unemployment is on the rise, while wage growth is now expected to be lower than previously forecasted.
Regarding inflation figures, the central bank admitted that a lower krone during 2014 will support consumer prices in the upcoming period.
After today’s assessment of the Norwegian economy, the central bank has left the door open for further easing in the autumn.
(Market News Provided by FXstreet)