Iceland cuts by 150 basis points

The Central Bank of Iceland cut its policy rate by one and half basis points to 15.5% on Wednesday, the second cut in less than a month.

The Monetary Policy Committee had said on 19 March, when the rate was cut by a full percentage point, that conditions for monetary easing were in place. The committee said on Wednesday that economic developments since then confirmed this view.

CPI fell by 0.6% in March, which brought the rate of inflation down to 15.2% from 18.6% in January and the committee n