The policy rate dropped by 0.25 percentage points

The Central Bank of Iceland Monetary Policy Committee has decided to reduce the Bank’s interest rates by 0.25 percentage points. The bank’s main interest rate, seven -day interest rates, will therefore be 7.50%.

All committee members supported this decision, but this is the fourth time in a row that the bank has lowered interest rates.

Landsbanki and Íslandsbanki predicted that the policy rate remained unchanged, while Arion predicted a 0.25 percent decline.

The Monetary Policy Committee statement states that inflation has been 4.2% in April and has decreased considerably from the highest two years ago.

According to the Central Bank’s recent forecast, it will remain close to 4% throughout the year but will then begin to aim for goals. However, uncertainty about the inflation outlook remains high, not least because of recent international economic turmoil.

Still a few vigor in economic activity

« The growth of domestic demand has slowed in line with the focused monetary policy. goal, ”says the statement.

Interest will be as follows:

• Day loans 9.25%
• Borrowing against a 7 -day 8.25%
• Deposits tied for 7 days 7.50%
• Business accounts 7.25%