Norges Bank lowered rate to record high in order

Norges Bank lowered the rate to a record high, in order to save the economy from falling oil

central bank
Norway today decided to reduce the
interest rates to a record low
level and he said he could cut rates
and then, because he wants to save the economy
from the fall of the largest producer of
Oil in Western Europe against the backdrop of a dive
down oil prices.

Deposit rate
It was reduced by 25 basis points – to
1.00% to 0.75%. This step is expected of all
7 of 17 economists Bloomberg. "prospects
growth for the Norwegian economy weakened,
and inflation is projected to be reduced
farther"- the governor said Oystein
Olsen said in a statement.

after loosening
policy in June signaled Olsen,
that there is a 70 percent chance that the regulator
choose another course this fall. Ever
then, oil prices have fallen by 25%, resulting in
a reduction crown approximately 7%
against the euro, while inflation was higher
2.5%. "We expect that GDP growth in mainland
part of the increase, but much more
slower pace than we have seen previously,
– said Kyrre Aamdal, Senior Economist
DNB ASA. – It will not be enough to
meet all the proposals of the working
force, so unemployment is gradually
increases".

The collapse in oil prices has already
impact on the economy – it has lost
$ 500 billion. Growth in the mainland
It slowed to 0.2% in the second quarter,
the total volume was reduced to 0.1%. Unemployment
currently hovering around
the highest rates since 2006,
because oil companies have cut
more than 20 thousand. jobs.

The pair EUR / NOK trading
at 11:28 at 9.4488 (+ 1.91%), while the
closing yesterday she was on the mark
9.2720. EUR / USD is beginning
fall after the decision was announced
Norway’s central bank – to the level
1.1189.

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