Iceland holds as economy slows
Central bank keeps policy rate at 8% in unanimous vote
The Central Bank of Iceland has left its key interest rate unchanged.
In a statement announcing the decision today (October 7), the monetary policy committee noted that headline annual inflation had reached a two-year high of 5.9% in September, but said underlying inflation remained stable at just over 4%. The acceleration in headline inflation had been partly driven by the impact of the US-Iran conflict, the bank wrote.
It expected inflation to “fall fairly rapidly in 2027”. Nonetheless, the
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