30 Oct 2008

Norway cuts rates by half a point

9:06 am on 30 October 2008

Norway's central bank has cut its interest rate by 0.5%, to 4.75%, in an attempt to stave off a severe economic downturn.

The cut is Norway's second half-point reduction in interest rates this month.

Norway relies heavily on revenue from oil and has been hit by recent falls in the oil price.

In a new monetary policy report, the bank also revised down its forecast for economic growth this year, from 3.25% to 2.5%.

Inflation in Norway currently stands at 3.1%, above the central bank's target of 2.5%.