Iceland Central Bank Lifts Rate By 100 Bps

RTTNews | 843日前
Iceland Central Bank Lifts Rate By 100 Bps

(RTTNews) - Iceland's central bank raised its key interest rate sharply on Wednesday to contain the risk of wage-price spiral in the face of strong demand pressures and the upcoming wage negotiations.

The Monetary Policy Committee of the Central Bank of Iceland decided to raise the benchmark interest rate, which is the rate on seven-day term deposits, by 100 basis points to 7.50 percent. The previous revision to the rate was in February, when the policy rate was hiked by 50 basis points. The interest rate has now reached its highest level since mid-2010.

Policymakers observed that inflationary pressures are still rising and price growth is becoming more widespread. Long-term inflation expectations remained well above the target.

In February, consumer price inflation rose to 10.2 percent from 9.9 percent in January. The rate far exceeded the target of 2.50 percent.

The central bank said inflation is expected to be higher in the near future than estimated previously despite the cooling housing market activity.

Further, the MPC said the economic growth is set to sustain strong growth in the long run. Domestic demand grew more than estimated earlier and the labor market is very tight, the bank observed. "Under these circumstances, it is important to prevent a wage-price spiral, particularly in view of the strong demand pressures in the economy and the upcoming wage negotiations," the bank said.

The MPC vowed to apply its policy instruments so as to ensure a better balanced economy and bring inflation back to the target.

read more
Iceland Cuts Key Interest Rate For Fourth Straight Time

Iceland Cuts Key Interest Rate For Fourth Straight Time

Iceland central bank lowered its benchmark rate for the fourth consecutive meeting on Wednesday, but policymakers stressed on the need for caution in future as inflationary pressures remain, and in view of the heighted global economic uncertainty. The Monetary Policy Committee of the Central Bank of Iceland, led by Governor Asgeir Jonsson, unanimously reduced the seven-day term deposit rate by 25
RTTNews | 115日前
Iceland Central Bank Raises Key Interest Rate To 8.75%

Iceland Central Bank Raises Key Interest Rate To 8.75%

Iceland's central bank raised its key interest rate sharply at its May meeting on Wednesday to contain the risk of a wage-price spiral in the face of strong demand pressures, and the policy board hinted that further rate hikes would bring inflation back to the target range and thereby ensure a better balanced economy.
RTTNews | 779日前
Iceland Central Bank Raises Policy Rates To Tame Inflation

Iceland Central Bank Raises Policy Rates To Tame Inflation

Iceland's central bank lifted its key interest rate for the fourth time this year and signaled further hikes to tame inflation. The Monetary Policy Committee of the Central Bank of Iceland decided to raise the key seven-day term deposit rate by 75 basis points to 5.50 percent. A similar higher rate was last seen in May 2017.
RTTNews | 1053日前
Swiss Market Ends Sharply Lower

Swiss Market Ends Sharply Lower

The Switzerland market closed weak on Friday, tracking weak global cues after U.S. President Donald Trump's latest tariff moves raised fears of a global trade war.
RTTNews | 16時20分前
European Stocks Close Weak As Trade War Fears Hurt Sentiment

European Stocks Close Weak As Trade War Fears Hurt Sentiment

European stocks closed lower on Friday as trade war fears resurfaced after U.S. President Donald Trump announced a 35% tariff on Canadian goods, effective August 1, 2025, and warned of a blanket tariff of 15-20% on most trading partners.
RTTNews | 16時36分前
Canadian Market Remains Weak On Tariff Concerns

Canadian Market Remains Weak On Tariff Concerns

After a weak start and a subsequent drop to lower levels, the Canadian market continues to languish in negative territory a little past noon on Friday. The mood is cautious amid escalating trade war fears following U.S. President Donald Trump announced a 35% tariff on all non-USMCA Canadian imports, effective August 1.
RTTNews | 17時16分前
Bay Street Likely To Open Lower

Bay Street Likely To Open Lower

Canadian shares look headed for a weak start on Friday due to trade war concerns, although fairly firm crude oil and bullion prices may help limit the market's downside. Data showing an increase in Canadian employment in the month of June and a drop in the unemployment rate may also aid sentiment a bit.
RTTNews | 20時59分前