Sedlabanki Officials Ease Monetary Policy Again
August 28, 2019
The Central Bank of Iceland’s key seven-day interest rate was cut for the fourth time in 2019, following moves in March, May, and June. The 3.50% new rate level is down 125 basis points altogether after today’s latest 25-bp adjustment. In a released statement from the Monetary Policy Council, officials said inflation expectations had eased since their prior meeting. Targeted inflation is now projected to be secured by the first half of 2020, and the outlook for growth next year has deteriorated because it is taking longer than assumed for the hard-hit tourism sector to recover. GDP this year will likely contract marginally.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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