Norges Bank shocks with cut to zero

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By Frank Jackman
07 May 2020

The Norges Bank surprised the market with an unexpected base rate cut to a record low of zero on Thursday. Since the start of the year, coronavirus volatility and wildly gyrating oil prices have buffeted the value of the kroner.

Since January 1, the rate has risen from Nkr8.78 to the dollar to Nkr10.30 on Thursday afternoon. It hit a high of Nkr12.10 on March 20, a day after Brent Crude dropped to $25.05 a barrel.

Ahead of the meeting, analysts did not expect the bank to make ...

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