Iceland raises rates by 50bp and warns more will follow
Central bank increases lending and deposit rates to 5.75% and 5%
The Central Bank of Iceland raised interest rates by 50 basis points today (June 10) in response to "significantly larger" wage increases than expected, and signalled further hikes are likely in the coming months.
The monetary policy committee (MPC) increased its seven-day lending and deposit rates to 5.75% and 5% respectively, and laid the foundation for additional hikes at its next meeting.
"It seems apparent that a sizeable rate increase will be necessary in August, followed by further rate
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Fed policy has more effect during US recessions, ECB paper finds
Researchers use non-linear methods to examine effects of FOMC shocks
Food prices remain a risk to disinflation – RBI research
Extreme weather events may also pose risks in the near term
Hungary cuts rates by 50 basis points
Outlook could be impacted by government’s proposed fuel subsidies
Bank Indonesia unexpectedly raises rates to support rupiah
Rate hike comes on top of central bank’s continued FX intervention amid a strong dollar
UK rate cuts must wait, says BoE chief economist
Huw Pill says policy must remain restrictive to tackle persistent components of inflation
ECB June rate cut likely if there are ‘no surprises’ – de Guindos
No sign yet of an oil shock but geopolitical risks are relevant, ECB vice-president says
UK inflationary pressure easing, BoE deputy says
Ramsden breaks inflation process into four steps, finding persistent elements are weakening
ECB should cut rates in next meeting, French governor says
Villeroy de Galhau says last leg of disinflation in eurozone should not be too difficult
Most read
- ECB says iPhone is currently incompatible with digital euro
- Supervisors grapple with the smaller bank dilemma
- Schnabel: ECB could replace central forecast scenario