The monetary policy committee (MPC) of the Central Bank of Iceland reduced rates by 25 basis points after its policy meeting today (August 28).
As a result, the rate on seven-day term deposits is now 3.5%. The move follows rate cuts implemented in May and June. The three decisions have decreased the key policy rate by a total of 100bp.
An acute crisis in the key tourism sector will contribute to a 0.2% contraction of GDP in 2019, according to the central bank. This is the main reason behind