Central Bank of Iceland

50-Basis Point Icelandic Central Bank Rate Hike

February 8, 2023

The Central Bank of Iceland‘s one-week term rate was raised today by 50 basis points to 6.5%. That incremental size is twice those of the previous two rate increases in October and November. The policy rate was cut five times in 2020, taking such from 3.0% to just 0.75%. Four hikes in 2021 between May […] More

Digesting the Powell and Biden Speeches and Other Central Bank Decisions

February 8, 2023

Fed Chairman Powell yesterday reaffirmed the assertion that inflation has begun to decline but balanced that success with views that the peak in interest rates may be higher than indicated earlier and that the job of restoring in-target inflation will take quite some time longer. With a refrain of let’s-finish-the-job, U.S. President Biden sounded like […] More

Rate Hikes at the Reserve Bank of New Zealand and the Central Bank of Iceland

November 23, 2022

Although not a surprise to investors, the Reserve Bank of New Zealand official cash rate was increased by a larger 75-basis point increment to 4.25%. The prior five changes had been each an increase of a half percentage point. At the start of the tightening cycle in October 2021, the rateĀ  had been just 0.25%. […] More

Latest Icelandic Central Bank Rate Hike… and More Promised Ahead

August 24, 2022

the Iceland’s seven-day term deposit rate was raised by 75 basis points to a six-year high of 5.5%. The current tightening cycle in Iceland began in May 2021 from a base of 0.75% and has further distance to go, according to a statement from the Central Bank of Iceland’s Monetary Policy Committee released today. Icelandic […] More

Continuing Dollar Uptrend

August 24, 2022

Investors remain focused on the Federal Reserve’s annual symposium at Jackson Hole, Wyoming, which starts tomorrow. This coming event has put the theme of tightening monetary policy into the spotlight. The Fed has been at the forefront of the fight against inflation, and the dollar continues to be well-bid, rising another 0.5% overnight against its […] More

Percentage Point Increase of Icelandic Central Bank Rate to 4.75%

June 22, 2022

The Central Bank of Iceland raised its policy rate today by a full percentage point, just as it had done at its prior review in early May. The rate from now will be at 4.75%, up from 2.0% at the end of 2021, and a pandemic low of 0.75% from May 2020 until May 2021. […] More

With Central Bank Policies in Today’s Spotlight, Tuesday’s Equity Rally Has Been Followed by Renewed Selling on Wednesday

June 22, 2022

Fed Chairman Powell delivers his semi-annual congressional testimony on U.S. monetary policy and the economy at 10:00 EDT (14:00 GMT) before the Senate Banking Committee. He is likely to strike a hawkish tone, prioritizing the goal of reducing inflation and halting the upward creep of expected inflation. The quarterly review of the Swiss National Bank’s […] More

Central Bank Rate Hike in Iceland

February 9, 2022

The Central Bank of Iceland’s policy interest rate has been lifted 75 basis points to a two-year high of 2.75. This was the fifth rate hike since its pandemic low of 0.75%, following increases of 25 basis points last May, August, and October as well as a 50-basis point incremental rise in November. CPI inflation […] More

Lessening Risk Aversion

February 9, 2022

The recent sell-off in bonds has taken a step back, and that has encouraged bottom-feeding in equities. Nonetheless, markets have come a long way in the first five weeks of 2022. The 30 year U.S. fixed mortgage rate rose another five basis points last week and, at 3.83%, was 56 basis points above its end-2021 […] More

Icelandic Central Bank Rate Hike

November 17, 2021

The Central Bank of Iceland‘s policy interest rate has also been raised multiple times in response to the recent acceleration of inflation. Today’s hike to 2.0% from 1.5% increased the ante following 25-basis point advances in May, August, and October. “The inflation outlook has deteriorated somewhat since August, owing in part to more persistent global […] More