Island Zinssatz

The Central Bank of Iceland held its seven-day term deposit rate at 9.25% for the sixth consecutive time in its August 2024 meeting, keeping borrowing costs at their highest level since 2010. The Committee stated that the current policy stance is sufficient to bring inflation back to its target range, but persistent inflation and strong domestic demand call for caution. Inflation has risen marginally since the MPC’s May meeting, standing at 6.3% in July, with underlying inflation remaining high and price increases being widespread. However, inflation expectations were broadly unchanged but remain above the target. Moreover, some demand pressures persist in the economy and have subsided only slightly since the central bank’s last meeting.