OSLO, Norway (AP) — Norway's central bank has cut its key interest rate by 0.25 percentage points to 1.5 percent as it tries to ease the impact of the economic downturn across Europe.

Norges Bank Governor Oeystein Olsen said Wednesday the continuing downturn abroad and the strong Norwegian krone are combining to keep inflationary pressures under control as well as weighing on growth.

He added that "the current outlook suggests that the key policy rate may remain low longer than projected earlier."

The central bank said the krone is strong and inflation is projected to remain between 1.25 percent and 1.5 percent to the end of the year.

It added analyses indicate it will likely take several years until inflation returns to its target of 2.5 percent.