LONDON, Nov 1 (Reuters) - Norway could cut its interest rates below zero if the country's economy is hit by "significant" new shocks, the head of the central bank said on Tuesday.
Asked whether Norway had gone as far as it can with cutting interest rates, central bank Governor Oeystein Olsen, said: "The short answer is no."
"Nothing is excluded," he added. "Zero is not a bound principally we could go lower if needed... (but) to do that, the Norwegian economy has to be hit by new significant negative shocks," Oeystein said at an event organised by think-tank OMFIF in London.
Norway's central bank kept its key interest rate unchanged at 0.50 percent last week, in line with forecasts.
In September when the central bank left its key policy rate steady, Governor Oeystein Olsen said the rate could remain at 0.50 percent for several years.
(Reporting by Marc Jones and John Geddie) ((John.Geddie@thomsonreuters.com; +44 20 7542 3486; Reuters Messaging: john.geddie.thomsonreuters.com@reuters.net))
Asked whether Norway had gone as far as it can with cutting interest rates, central bank Governor Oeystein Olsen, said: "The short answer is no."
"Nothing is excluded," he added. "Zero is not a bound principally we could go lower if needed... (but) to do that, the Norwegian economy has to be hit by new significant negative shocks," Oeystein said at an event organised by think-tank OMFIF in London.
Norway's central bank kept its key interest rate unchanged at 0.50 percent last week, in line with forecasts.
In September when the central bank left its key policy rate steady, Governor Oeystein Olsen said the rate could remain at 0.50 percent for several years.
(Reporting by Marc Jones and John Geddie) ((John.Geddie@thomsonreuters.com; +44 20 7542 3486; Reuters Messaging: john.geddie.thomsonreuters.com@reuters.net))
