The Central Bank of Iceland increased its policy rate on November 7 for the first time since August 2016.
The monetary policy committee raised the rate by 25 basis points to 4.5%.
The committee’s statement says expected inflation in Iceland is expected to rise, and to continue above target in 2019. Inflation has followed an upward trend since mid-2017, reaching 2.8% in October. The central bank’s target range is 2.5%.
The rate hike takes place after Iceland’s government announced