India, June 19 -- Norges Bank cut its interest rate unexpectedly for the first time in five years as inflation eased somewhat faster than expected and signaled further reduction in policy rate if the economy evolves as estimated.
The Monetary Policy and Financial Stability Committee of Norges Bank unanimously decided to cut the policy rate to 4.25 percent from 4.50 percent.
The bank was widely expected to keep the rate unchanged at 4.50 percent. The interest rate has been at 4.50 percent since December 2023.
"The economic outlook is uncertain, but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of 2025," the bank said.
Governor Ida Wolden Bache said, "A cautious normalisation ...