Iceland raises rates 125bp to head off ‘wage-price spiral’
The Central Bank of Iceland raised its policy rate by 125 basis points on May 24 to 8.75%, as officials warned of a “wage-price spiral”.
The move is the thirteenth consecutive hike, and the largest in two years of monetary tightening. Over the last two years, the central bank has raised rates by eight percentage points.
In its policy statement, the monetary policy committee said it expected it would have to continue raising the policy rate. “It is necessary to tighten the monetary stance still
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 info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary policy decisions
Sarb raises rates and warns of worsening economy
Central bank cuts growth forecast and says long-term inflation expectations are rising
Nigerian MPC continues tightening
Official figures show slight rise in inflation as pressure on currency continues
RBNZ raises rates to peak level
Central bank predicts rates will come down slightly faster than in February forecast
Bank of Israel increases rates by 25bp to 4.75%
Central bank stresses inflation slowed down over the last three months
PBoC holds key lending rates for ninth straight month
Central bank unlikely to cut rates this year amid yuan weakness, analysts say
Argentina raises rates again
Economic stability grows more distant as elections loom
Peru holds rate at 7.75%
Central bank maintains policy unchanged since January, although inflation remains over target
BoE raises rates 25bp and ditches UK recession forecast
Central bank predicts inflation will stay higher for longer after MPC splits 7–2 on policy hike