Iceland tightens policy to tame inflation


The Central Bank of Iceland increased interest rates today (October 6) in a bid to tame above-target inflation.

The monetary policy committee increased the key policy rate by 25 basis points to 1.5%. The rate on overnight loans is now 3.25%, on seven-day collateralised loans 2.25%, and on current accounts 1.25%.

The committee pointed out inflation rose year on year by 4.4% in September, considerably above the central bank’s 2.5% target.

Officials also stressed economic indicators signal a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: