Norwegian krone weakens against the Euro, complicating interest rate decisions

The Norwegian krone has significantly weakened against the Euro, reaching its lowest level since April and nearing 12 kroner per Euro. This currency depreciation complicates Norges Bank's decision on interest rates, as it can fuel imported inflation and hinder the bank's goal of lowering rates. The krone's weakness is attributed to falling oil prices and weaker economic growth prospects, impacting consumer purchasing power while supporting export industries.