Source: Sharecast
Norges Bank cut its policy rate to 4.25% from 4.5%, where it has stood since December 2023. Analysts were expecting rates to be left on hold.
The decision to cut rates was unanimous.
Governor Ida Wolden Bache said: "Inflation has declined since the monetary policy meeting in March, and the inflation outlook for the coming year indicates lower inflation than previously expected.
"A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary."
She added: "The uncertainty surrounding the economic outlook is now greater than normal. If the economy takes a different path than currently envisaged, the policy rate path may be adjusted. But our objectives stand firm.
"We will finish the job and ensure that inflation is brought all the way back to 2 percent."
Also on Thursday, the Swiss National Bank cut interest rates by 25 basis points to zero, as it moved to tackle disinflation.
The central bank said it was "countering the lower inflationary pressure" with the cut.
"The SNB will continue to monitor the situation closely and adjust its monetary policy if necessary, to ensure that inflation remains within the range consistent with price stability over the medium term," it said.
On Wednesday, meanwhile, the US Federal Reserve kept the benchmark rate unchanged at 4.25% to 4.50% for the fourth consecutive meeting and signalled two cuts by the end of the year. The Fed also downgraded its growth forecasts for the next two years.
