Oct 29
Norway: Less frontloaded than expected
As widely expected, Norges Bank slashed its policy rate at the monetary policy meeting today by 50bp to 4.75%. But we note that Norges Bank considered cutting rates by just 25bp. Norges Bank said that they expect the policy rate to be in the interval 4–5% in the period up to the publication of the next monetary policy report on March 2009 - unless the economy is exposed to more shocks. In other words they have taken the severity of the credit crisis into account. It indicates just one more rate