Iceland makes 25bp cut amid mortgage market turmoil
Decision comes after court ruling forces lenders to tighten terms of home loans on offer
The Central Bank of Iceland has cut its policy rate by 25 basis points, citing stagnant inflation, slowing growth in domestic demand and GDP, and the impact of a recent supreme court decision on the mortgage market.
In a press release today (November 19) the bank said headline inflation in annual terms had risen to 4.3% in October from 4.1% in September and had remained “close to 4%” for nearly a year – still far from its 2.5% target. However, it said it was now forecasting that inflation would
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