Bank of Iceland

October 2, 2019

Officials at the Bank of Iceland engineered their fifth reduction since March of the seven-day term deposit rate, which was lowered by 25 basis points to 3.25%. Earlier cuts were done in August, June, May and March and totaled 125 basis points. In a released statement, the Monetary Policy Committee observes a drop in expected inflation and a rise of the krona since it met five weeks earlier in August. Policymakers anticipate a continuing slowdown of growth in an uncertain global environment and expect the path of inflation to be downward and at a somewhat steeper slope than imagined before.

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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