Iceland
Icelandic Benchmark Interest Rate Not Raised Further
September 21, 2011
A shifting direction in Icelandic monetary policy had been signaled in a more hawkish statement from the Central Bank of Iceland in mid-June and acted upon with a 25-basis point increase on August 17 of the 7-day collateralized lending rate to 4.5%. Between March 2009 and February of the current year, fifteen cuts had reduced […] More
Icelandic Rate Hike
August 20, 2011
On August 17, Sedlabanki’s Monetary Policy Committee authorized the first increase of its seven-day collateralized interest rate since an IMF-mandated three percentage point jump to 18% in late October 2008. From March 2009 through February 2010, fifteen ensuing rate cuts had slashed the key rate all the way to 4.25%, where such remained for the […] More
Central Bank of Iceland
June 15, 2011
Iceland’s central bank, Sedlabanki, left its interest rates unchanged including a 4.25% seven-day lending charge. The statement posted today on the central bank’s web site is more hawkish than the prior one of April 20. Gone is a sense of agnosticism about the direction of the next policy change. If indeed the next move is […] More
Icelandic Monetary Policy in Limbo
April 20, 2011
For a second meeting in a row of the Sedlabanki Monetary Policy Committee, the 7-day collateralized lending rate has been kept unchanged at 4.25%. From a peak of 18%, the key rate had been reduced fifteen times starting with a 100-bp cut on March 2009 through a 25-bp move on February 2 of this year. […] More
A Pause in Icelandic Monetary Easing
March 16, 2011
After peaking at 18% in October 2008, the Sedlabanki seven-day lending rate was cut by 800 basis points in 2009, 550 bps in 2010, and by 25 basis points to 4.25% at the first policy meeting of this year on February 2. In announcing no further easing today, a released statement from monetary officials observed […] More
Another Icelandic Central Bank Rate Cut — 14th So Far
December 8, 2010
The central bank of Iceland’s seven-day collateralized lending rate was slashed by another 100 basis points to 5.5% and has dropped 1,250 basis points since the first of 14 reductions made in March 2009. A statement from Icelandic monetary officials reiterated the factors cited at the time of the previous reduction, a 75-bp cut on […] More
Central Bank of Iceland Cuts Key Interest Rates by 75 Basis Points
September 22, 2010
Monetary officials in Iceland reduced all key interest rates today, including the main seven-day collateralized lending rate from 7.0% to 6.25%. This was the sixth cut in 2010, all of which total 375 basis points. Six rate cuts also were made in 2009, totaling 800 basis points, from a peak of 18% after an IMF-mandated […] More
Dollar Falters in Wake of FOMC Statement
September 22, 2010
The dollar has lost 1.3% against the Australian dollar, 1.0% against the euro, 0.8% versus the Swiss franc, 0.7% relative to the Canadian dollar, 0.6% against the kiwi, 0.5% versus the yen and 0.3% relative to sterling. The yuan did not move overnight against the dollar. The German Dax and Paris Cac are 0.8% weaker […] More
A 100-Basis Point Icelandic Rate Cut on August 18th
August 24, 2010
A full percentage point reduction of the Icelandic benchmark interest rate to 7.0% last week was twice as much as analysts were anticipating and justified as follows: Lower inflation, lower inflation expectations, a stronger króna, and the prospect of more rapid disinflation than previously expected provide the scope for a larger interest rate reduction than […] More
Icelandic Central Bank Rates Cut 50 Basis Points
June 23, 2010
Sedlabanki has implemented the fourth rate cut of 50 bps this year and the tenth reduction since March 2009. The seven-day lending rate is now 8.0%, 1000 basis points lower than such had been from October 2008 until March 2009 after securing aid from the IMF. The six reductions in 2009 had totaled 800 basis […] More
