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Iceland holds rates for first time in over two years

Inflation is rising, but MPC holds until new forecast comes in

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The Central Bank of Iceland halted more than two years of monetary policy tightening on October 4, holding rates at 9.25%. Since May 2021, the central bank has raised rates at 14 consecutive meetings, by a total of 8.5 percentage points.

The Nordic country has faced persistent high inflation. The monetary policy committee acknowledged inflation rose in September, to 8% year on year. This is the second straight month inflation has risen. The central bank’s inflation target is 2.5%, averaged over

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