Central Bank of Iceland

May 16, 2018

Iceland’s Monetary Policy Committee agreed to leave its 7-day term deposit rate at 4.25%. It’s been at that level since a 25-basis point cut last October versus 5.0% at the end of 2016 and 5.75% at the end of 2015. According to a released statement, the monetary stance is tight and appropriately so in order to contain rapid demand growth amid underlying labor market pressures. Inflation is presently hovering near its 2.5% target, the krona has lately been stable, and housing price inflation has eased. All in all, officials found the inflation outlook and indications of expected inflation little changed since their last meeting.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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