The Central Bank of Iceland raised its key interest rate by 50bps to 2% during its November 17th, 2021 meeting, hiking rates for a third meeting in a row. The Monetary Policy Committee noted that headline inflation rose to 4.5% in October, largely due to domestic price pressures, namely rising home prices and wage growth, but the contributions from global oil and commodity prices has also grown stronger. The outlook for inflation has deteriorated since August, and is now expected to continue rising in the coming months. Meanwhile, economic growth projections were left unchanged at 4% in 2021, however, 2022 GDP growth is expected to surpass 5% amid better export prospects. Thus, inflation is seen above 4% through the year-end, before aligning with the central bank's 2.5% target in the Q3 of 2022. Policymakers reiterated their commitment to apply the tools at their disposal to ensure that inflation returns to target within an acceptable time range. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.75 percent from 1998 until 2021, reaching an all time high of 18 percent in October of 2008 and a record low of 0.75 percent in November of 2020. This page provides - Iceland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on December of 2021.
Interest Rate in Iceland is expected to be 2.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Interest Rate is projected to trend around 2.75 percent in 2022 and 3.00 percent in 2023, according to our econometric models.