Falling oil prices have led the Norwegian Central bank to cut the benchmark interest rates by 25 bps, bringing down the Norges Bank key lending rate to 0.75%, from 1.00% previously. The rate cut yesterday was a surprise as most economists polled expected the Norges Bank to hold rates steady. In its press conference, the Central Bank took a dovish stand as it signaled further rate cuts with a 25% probability of another rate cut by December 2015 followed by another interest rate cut by end of the second quarter of 2016. The dovish stance comes as lower crude oil prices have led to a decline in oil investments which could rollover into the broader Norwegian economy. The Krone reacted strongly to the dovish move with EURNOK rallying strongly on an already firm Euro. EURNOK gained as much as 2.37% for the day, posting a 28-day high of 9.4826.