« It would be strange if there was no policy rate cut »

Már Wolfgang Mixa, associate professor of finance at the University of Iceland, believes nothing else but that the Central Bank will lower its policy rate next week. Róbert Farestveit, Head of the ASÍ Economics and Analysis Division, says a reduction of more than 25 percentage points is unlikely.

The next interest rate decision by the Central Bank Monetary Policy Committee is on the agenda on Wednesday next week.

The Central Bank’s policy rate is now 7.75 percent.

Real interest rates rarely been higher

« It would be strange to me if there was no a policy rate cut of at least 25 points. Real interest rates in the country have rarely been higher.

According to Más on the real interest rate increase in recent years, there is an example in Iceland. Real interest rates have not been higher since the economic collapse in 2008.

Már says that the only thing that could justify such a real interest rate would be if « everything was going out of control » in the economy.

Már says he has no explanation as to why the interest rate cut process has not been faster. He would have to get into the mindset of those who sit on the Monetary Policy Committee to understand it.

Two options in the position

Róbert says that the Monetary Policy Committee has two options in the position, either the policy rate will remain unchanged or a cautious reduction will be reduced to 25 points.

« Since the latest policy rate decision, little has changed in terms of inflation. However, the inflation outlook has deteriorated a bit of the year, given how the Monetary Policy Committee has been so surprising to me if it would keep interest rates unchanged, » says Robert in a conversation with mbl.is

Róbert, however, says that certain factors could lead to a reduction in interest rates, for example, that some in public finances are greater as a result of the issue of a financial plan.

Is to walk to the homes of dead

Vilhjálmur Birgisson, chairman of the trade union and chairman of the Akranes union.

mbl.is/maria

Vilhjálmur Birgisson, chairman of the trade union and chairman of the Akranes Trade Union, says in a conversation with mbl.is that there is high hopes that the Central Bank « will lower interest rates. »

Vilhjálmur says he will hope that the reduction will be at least 50 percentage points.

« This interest rate is to go dead to Icelandic homes and this is to significantly burden companies in the country, so I believe there is plenty of scope for a significant reduction in interest rates. »

Vilhjálmur also accuses the country’s shops for greed. He says the prices of barbecue products, for example, have risen significantly this spring.

Suggests the unchanged growth

According to Landsbanki’s new Hagsjá, card turnover increased by 9.4 per cent year -on -year, but Icelanders have never gone on more international trips in one month than in recent months.

Private consumption is pointing out and that changes in it weigh heavily in national accounts.

Landsbanki’s Hagsjá believes this underpins that the Monetary Policy Committee pauses the interest rate cut process and keeps the policy rate unchanged.