Norway cuts rate to shore up economy

Article reports that Norway’s central bank made its biggest interest rate cut ever on the 17 December 2008 to try to revive the oil-rich country’s faltering economy. The Norges Bank cut its main policy rate by 1.75% to 3%. The deep cut, which follows a similar move by Sweden’s Riksbank two weeks ago, underlines how Nordic policymakers are scrambling to ease fiscal and monetary policy as the region starts to suffer from the global econ­omic downturn.

ESO: Background information: Norway set to dip into $332bn oil fund http://www.europeansources.info/record/norway-set-to-dip-into-332bn-oil-fund/

Norges Bank: Press Release, 17.12.08: Key policy rate set at 3.00 per cent http://www.norges-bank.no/templates/article____73131.aspx

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