Iceland surveys market economic expectations

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A Central Bank of Iceland survey, released on August 28, reveals that market inflation expectations have dropped, while participants believe monetary policy has tightened.

The 25 bond market agents surveyed predicted lower twelve-month inflation over the next five years than last quarter's participants. The median market expectation was for a 4.5% inflation rate, down from the 5.1% level anticipated by the last review.

Participants also perceived monetary policy to have tightened. In the last

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