The Central Bank of Iceland unexpectedly raised its seven-day term deposits rate by 25 bps to 4.5 percent on November 7th of 2018. It was the first rate hike since November 2015, saying inflation expectations rose above target and inflation is expected to exceed the target of 2.5 percent for next year, as a result of higher oil prices and depreciation of the króna. Also, although GDP growth in 2017 and in the first half of 2018 was stronger than initially thought, growth in economic activity is expected to slow faster than previously estimated. Policymakers said that if inflation expectations remain persistently at a level above the target, they will call for a tighter monetary stance in order to keep inflation at the target on the long run. Interest Rate in Iceland averaged 7.64 percent from 1998 until 2018, reaching an all time high of 18 percent in October of 2008 and a record low of 4.25 percent in February of 2011.

Interest Rate in Iceland is expected to be 4.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Iceland to stand at 4.50 in 12 months time. In the long-term, the Iceland Interest Rate is projected to trend around 4.25 percent in 2020, according to our econometric models.

Iceland Interest Rate
Forecast Data Chart
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Calendar GMT Actual Previous Consensus TEForecast
2018-06-13 08:55 AM CBI Interest Rate Decision 4.25% 4.25% 4.25% 4.25%
2018-08-29 08:55 AM CBI Interest Rate Decision 4.25% 4.25% 4.25% 4.25%
2018-10-03 08:55 AM CBI Interest Rate Decision 4.25% 4.25% 4.25% 4.25%
2018-11-07 08:55 AM CBI Interest Rate Decision 4.5% 4.25% 4.25% 4.25%
2018-12-12 08:55 AM CBI Interest Rate Decision 4.5% 4.5% 4.5%

Iceland Money Last Previous Highest Lowest Unit
Interest Rate 4.50 4.25 18.00 4.25 percent [+]
Interbank Rate 4.67 4.67 18.47 3.88 percent [+]
Money Supply M0 130.20 135.88 173.88 11.05 ISK Billion [+]
Money Supply M1 522.55 507.48 522.55 8.88 ISK Billion [+]
Money Supply M2 1173.33 1139.01 1173.33 0.06 ISK Billion [+]
Money Supply M3 1884.62 1861.47 1884.62 0.03 ISK Billion [+]
Banks Balance Sheet 3749506.00 3679655.00 14896283.00 257400.00 ISK Million [+]
Foreign Exchange Reserves 761167.31 703344.31 1110305.98 610.00 ISK Million [+]
Private Debt to GDP 314.90 336.70 400.80 272.80 percent [+]
Central Bank Balance Sheet 753153.00 731705.00 1638738.00 57829.00 ISK Million [+]

Iceland Interest Rate

In Iceland, the benchmark interest rate is set by the board of Governors of the Central Bank of Iceland (Seðlabanki Íslands). The main interest rate is the seven-day term deposit rate since May 2014. Previously the Bank’s key rate was the rate on its collateralised loans to financial institutions, but in the wake of the crisis the interest rate on the Bank’s deposits had greater influence on money market, as demand for Central Bank loans had been limited. Therefore the Bank’s key interest rate is the rate on seven-day term deposits. This page provides - Iceland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Interest Rate - actual data, historical chart and calendar of releases - was last updated on December of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
4.50 4.25 18.00 4.25 1998 - 2018 percent Daily

Country Last Previous
Argentina 59.23 Dec/18
Turkey 24.00 Nov/18
Mexico 8.00 Nov/18
Russia 7.50 Nov/18
South Africa 6.75 Nov/18
Brazil 6.50 Nov/18
India 6.50 Dec/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Nov/18
United States 2.25 Nov/18
Singapore 1.97 Nov/18
Canada 1.75 Dec/18
South Korea 1.75 Nov/18
Australia 1.50 Dec/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Nov/18
France 0.00 Nov/18
Germany 0.00 Nov/18
Italy 0.00 Nov/18
Netherlands 0.00 Nov/18
Spain 0.00 Nov/18
Japan -0.10 Nov/18
Switzerland -0.75 Nov/18