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 inflation has occurred that bears monitoring and requires caution. Some extra labor market pressure can be observed, and the output gap is getting narrower. Economic growth of 3.6% is close to their expectations.

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



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