the Norwegian Central Bank lowered its key interest rate from 1% to a record low of 0.25% to limit the economic impact of a pandemic coronavirus.
This is the second unexpected rate cut Norges Bank this month. On 13 March the rate was reduced from 1.5% to 1%.
“Since Norges Bank’s rate cut last week, the situation in the Norwegian economy continues to deteriorate,” reads the statement of the controller.
“Norges Bank will continuously consider measures to ensure that the key rate affect money market rates,” said the Bank, adding that it is possible to further reduce the rate.
Norges Bank also took a series of emergency measures to help stabilize markets, including a warning that it can conduct foreign exchange intervention.
the Norwegian Parliament approved an emergency budget spending to support companies and those who remained without work, writes Reuters. The government said that developing new plans to prevent a wave of bankruptcies.