Central Bank of Iceland

Central Banks and Weak European Data in the Spotlight

June 26, 2019

The Central Bank of Iceland’s 7-day term rate has been cut 25 basis points to 3.75% following a 50-basis point reduction at the prior monetary policy review last month. These moves represent a trend reversal from a 25-basis point increase last November.  In a released statement explaining the decision, officials anticipate a contraction of domestic […] More

Icelandic Central Bank Rate Cut as Growth is Slowing

May 22, 2019

The Central Bank of Iceland unexpectedly cut its seven-day term deposit rate to 4.0% from 4.5%. This reduction constitutes a double-reversal of trend. Following cuts totaling 125 basis points from May 2017 to October 2017, the central bank rate had been raised by 25 basis points just six months ago amid robust domestic growth. Today’s […] More

Brexit Mess and Central Bank News

May 22, 2019

The latest Brexit proposal from British Prime Minister May was defeated heavily by a parliamentary vote of 432-202. That was a significantly bigger defeat than on her previous attempt. Sterling dropped to a four-month low of $1.2641. The ten-year British gilt yield slid six basis points to 1.02%, but the Ftse-100 avoided the slide experienced […] More

Financial Market News Cycle Headed by FOMC, Brexit, and U.S./Sino Trade Talks

March 20, 2019

Today’s FOMC announcement at 14:00 EDT (18:00 GMT) will be accompanied by updated forecasts and followed at 14:30 by Chairman Powell’s press conference. Analysts look for scaled-back growth and inflation forecasts, fewer interest rate hikes this year than indicated earlier, and a stop in quantitative tightening. British Prime Minister May is asking for a 3-month […] More

Aussie Dollar Down More than 1% Overnight

February 6, 2019

An overnight speech by Bank of Governor Lowe, not Donald Trump’s delayed State of the Union address, stole the currency market spotlight today. Forward guidance from the Reserve Bank of Australia had for some time pointed to an eventual interest rate increase, but Lowe said that in line with shifting economic data and changing global […] More

Central Bank of Iceland Retains 4.25% Key Interest Rate

June 13, 2018

Iceland’s 7-day term interest rate has been at 4.25% since a 25-basis point cut last October, which culminated a 4-step easing cycle that included 25-bp cuts in May and June of last year and an initial 50-bp downmove in August 2016. These reductions exactly reversed three previous rate hikes done in June, August and November […] More

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 […] More

Central Bank of Iceland

February 7, 2018

The Monetary Policy Committee at Sedlabanki kept Iceland’s seven-day term deposit rate at 4.25%, its level since a 25-basis point cut in October 2017 that culminated four moves totaling 125 basis points of reduction since August 2016. Those declines fully reversed rate hikes previously during 2013. Officials released a rather hawkish statement that suggests that […] More

Central Bank of Iceland

December 13, 2017

Iceland’s Monetary Policy Committee had implemented cuts of its seven-day term interest rate of 50 basis points in August 2016 and of 25 basis points each earlier this year in May, June and October. The collective decline of 125 basis points exactly reversed hikes during 2015, leaving the level at 4.25%. The statement released today […] More

Central Bank of Iceland

November 15, 2017

Iceland’s seven-day term rate had been cut 25 basis points last month and earlier by 50 basis points in August 2016 and 25 bps each in May and June of this year. But a statement released after the latest review believes that the interest rate of 4.25% is appropriate for now. “The current monetary stance […] More