Likely new interest rate cut in autumn

Norges Bank headquartersNorges Bank headquarters.

Norges Bank keeps the key interest rate unchanged at 0.5 percent, but in September, an already record-low interest rates may become even lower.

– There is still a good chance that the key rate will be lowered during the year,  Governor Øystein Olsen says.
Thursday’s interest rate decision turned out the way that most analysts anticipated in advance; the key interest rate will be kept unchanged.
– The forecast for the key interest rate has not changed much since the last Monetary Policy Report,  Olsen says.
At the monetary policy meeting in March, Norges Bank projected that it is 100 percent likely that the key interest rate will be reduced to 0.25 per cent during the year, and 20 percent likely that it will be reduced further.

Source: NTB scanpix / Norway Today