The Norwegian Central Bank continues to lower its key interest rate in an attempt to combat the economic effects of the coronavirus.

This is the second time the institution has cut interest rates in response to the pandemic that has erupted, and since the last contraction, it is now at its lowest ever level. With the first monetary easing on March 13, the decrease was half a percentage point.

After today’s decision, the interest rate on deposits in the country is 0.25% from 1% before and is at its lowest level ever reached. The 0.75 basis point reduction is also the largest one-time shrinkage since the financial crisis.

A statement from the bank, published on Friday, said that after the first relief, the situation in the Norwegian economy continued to deteriorate, with no further exclusion of interest rates.

The Norwegian krone, which experienced its heaviest sell-off in history earlier this week, decreased by 3.3% in value.

Norway’s dependence on oil trade – it is the largest producer of the Old Continent after Russia, has left the country particularly vulnerable to the risk of recession, which investors responded by giving up the crown.

“Measures to curb the spread of the coronavirus have led many businesses to stop or curtail their activity”, the Norwegian Central Bank said in a statement. “Many workers are being made redundant and unemployment is showing a marked increase. The negative impact on the global economy is intensifying and oil prices have fallen further”, the text reads.

Thanks to its sovereign wealth fund, the largest in the world, Norway has been able to prevent itself from deteriorating the situation. The country’s prime minister, Erna Solberg, has already announced a stimulus package and promised to do everything necessary to prevent the economy from collapse.