Sedlabanki

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 […] More

Central Bank of Iceland

March 14, 2018

Sedlabanki’s Monetary Policy Committee, meeting just five weeks after the last policy review, decided to leave Iceland’s seven-day time deposit rate at 4.25%, the level since a 50-basis point reduction in August 2016. While observing that their outlook for inflation is broadly unchanged, but the committee’s post-meeting statement concedes that a marginal uptick in expected […] More

Central Bank of Iceland

August 24, 2016

Icelandic monetary authorities implemented their first interest rate change, a reduction of 50 basis points, since a hike last November and their first rate cut since December 2014. Moreover, forward guidance on future rate changes switched from a bias toward increases to an ambivalent signal. After the Monetary Policy Committee’s prior meeting in early June, […] More

Bank of Iceland

June 1, 2016

Icelandic monetary policy has been in a tightening cycle since an initial increase in the seven-day collateralized lending rate of 50 basis points in June 2015.  That move was followed by two 25-basis point hikes in August and November.  But officials managed to put off a fourth increase in the first half of 2016, which […] More

Central Bank of Iceland

March 16, 2016

The Monetary Policy Committee has retained a 6.5% 7-day collateralized lending interest rate.  Prior hikes were made of  50 basis points last June and August as well as 25 bps in November, which was the most recent change.  A statement released today by the committee commits policy to further tightening because of accelerating domestic inflationary […] More

Central Bank of Iceland Shifts Gears

June 10, 2015

First some policy history.  Iceland’s seven-day collateral lending rate was slashed in 15 steps to 4.25% by February 2011 from 18.00% prior to March 2009.  Then, seven increased between August 2011 and end-2012 lifted the rate back to 6.0%.  The next directional reversal came late last year, cuts of 25 basis points in November followed […] More

Bank of Iceland: No Rate Change

March 18, 2015

Iceland’s 4.5% seven-day term deposit rate, 5.25% seven-day collateralized lending rate, and 6.25% overnight lending rate were left unchanged after the latest review by the Monetary Policy Committee, which released a very similar statement to the prior one on February 4.  Officials are treating the recent slide of inflation cautiously. Inflation has measured 0.8% in […] More

Central Bank of Iceland Elects Not to Cut Interest Rate at February Meeting

February 4, 2015

The seven-day Icelandic rate had been cut by 50 bps in December and 25 bps in November 2014, reversing 43% of a previous 175-basis point rise in six steps between August 2011 and November 2012.  A statement released by the Monetary Policy Committee explains why a further deceleration of inflation to 0.8% in December-January did […] More

Bank of Iceland

August 21, 2014

The Bank of Iceland made a scheduled interest rate announcement on Wednesday.  Iceland’s seven-day central bank interest rate was kept at 6.0%, its level since November 2012.  A released statement observes, “The inflation outlook has improved somewhat since May, and it now appears that inflation will remain close to target during the forecast horizon. A […] More

Central Bank of Iceland

October 2, 2013

Iceland’s Monetary Policy Committee left its 7-day collateralized interest rate at 6.0%, a third as much as the pre-March 2009 high and the prevailing level since a 25-basis point increase in November 2012, which had been the sixth advance since August 2011 from a base of 4.25%.  Icelandic GDP growth was roughly 2% in the […] More

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