Oslo  - The Norwegian central bank on Wednesday cut its lead rate a further 0.50 percentage points to 4.75 per cent.

Norges Bank Governor Svein Gjedrem said in a statement that "the effects of the financial crisis will most likely be more pronounced than envisaged only recently. The slowdown in the Norwegian economy appears to be occuring raidly and is likely to be pronounced."

Two weeks ago, the bank decided to lower its rate by 50 basis points to 5.25 per cent.

That move shadowed similar cuts by the Fed, the European Central Bank and other leading central banks in a bid to ease credit market conditions.

The new cut takes effect Thursday.

Norway is not a member of the European Union. (dpa)