OSLO, March 27 (Reuters) - The Norwegian central bank will probably cut interest rates to help cushion the economy from a sharp drop in crude prices, the country’s central bank governor said in a speech in New York on Friday.
“If developments in the economy ahead prove to be broadly as projected, there are prospects that the key policy rate will be lowered,” Governor Oeystein Olsen said, echoing comments he made last week following a meeting of the central bank’s board.
“The analysis... suggests a key policy rate of approximately 1 percent in the coming years, followed by a gradual increase,” he added in the speech, published on the bank’s website.
Norges Bank’s key policy rate currently stands at 1.25 percent. (Reporting by Terje Solsvik, editing by Nerijus Adomaitis)