The monetary policy committee of Iceland’s central bank has cut its key policy rate by 50 basis points to 4%, it announced today (May 22).
Its decision was prompted by a sharp fall in its predictions for the country’s GDP growth.
“Output is now forecast to contract by 0.4% this year, instead of rising by 1.8%, as was forecast in February,” the Central Bank of Iceland said.
Iceland has an estimated population of 358,000 and an economy centred around a few industries. The central bank said its