Norges Bank, Norway's central bank, has called an unscheduled monetary policy meeting for 08:00 on March 29. The meeting was announced after the Norwegian krone, or NOK, hit a historic low against both the euro and the US dollar in overnight trading. A statement from the bank and a potential intervention in the currency markets are expected immediately after the meeting concludes.
The Norwegian krone fell to 12.15 against the euro and 11.23 against the US dollar during Asian trading hours. These levels represent a record low for the currency. Norges Bank Governor Ida Wolden Bache issued a brief statement confirming the unscheduled meeting of the bank's Executive Board.
According to the statement from Governor Bache, 'The Executive Board will assess the need for a swift policy response.' The krone has lost eight percent of its value in the past week alone. This sharp decline comes amid falling global oil prices and a broader sell-off of currencies tied to commodities.
The emergency meeting underscores the severity of the currency's recent decline. The central bank's Executive Board will now decide on any immediate measures to address the situation. The outcome of their assessment will be communicated to the public and financial markets right after the meeting.