Iceland cuts rates to 2.25%
Rate cut and changes to reserve requirements designed to offset virus shock
The effects of Covid-19 are being felt beyond virus hotspots, with the Central Bank of Iceland cutting interest rates by 0.5% to 2.25% today (March 11).
The central bank’s monetary policy committee also decided to lower deposit institutions’ average reserve requirement from 1% to 0%. The fixed reserve requirement will remain unchanged at 1%, but the central bank said firms could tap into this liquidity if stressed conditions emerge.
“With these actions, the bank is easing the monetary stance
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