"At its meeting on 10 December, the Executive Board decided to reduce the key policy rate by 0.25 percent-age point to 1.25%. At the same meeting, the Executive Board decided that the key policy rate should lie in the interval ¾% –1¾% in the period to the publication of the next Report on 19 March 2015, unless the Norwegian economy is exposed to new major shocks," the report states.
According to the report, the last two years' economic growth has been lower than the average for the past 20 years.
"The krone has depreciated markedly. As measured by the import-weighted krone exchange rate (I-44), the krone has depreciated by more than 7% since the September Report," the Norwegian Central Bank's report says.
The document adds that prospects for the Norwegian economy as a whole were down. Similarly, the Norwegian Central Bank estimates that oil prices and growth in private consumption and investments by the Norwegian will be lower in the long run.
Following the reduction in the key interest rates of Norway's Central Bank, the Norwegian krone plunged to its lowest level in the past five years, according to Market Watch. The Norwegian krone has depreciated by nearly 1.25 percent against euro, while since the beginning of the year the krone has dropped by 7.4-percent.