The Central Bank of Iceland lowered its rate on seven-day term deposits by 25bps to 3.5 percent during its August meeting, saying the GDP growth outlook for 2020 has deteriorated on the back of the strong contraction in tourism while inflation expectations have fallen back to target. Still, policymakers noted that this year’s economic contraction will measure 0.2 percent, slightly less than was forecast in May, due mainly to more resilient private consumption growth, although the contribution of net foreign trade is also more positive, as demand has shifted towards domestic production. Near-term monetary policy decisions will depend on the interaction between developments in economic activity, on the one hand, and inflation and inflation expectations, on the other. Interest Rate in Iceland averaged 7.48 percent from 1998 until 2019, reaching an all time high of 18 percent in October of 2008 and a record low of 3.50 percent in August of 2019.

Interest Rate in Iceland is expected to be 3.50 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 3.00 in 12 months time. In the long-term, the Iceland Interest Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.

Iceland Interest Rate
Forecast Data Chart
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Calendar GMT Actual Previous Consensus TEForecast
2019-03-20 08:55 AM CBI Interest Rate Decision 4.5% 4.5% 4.5% 4.5%
2019-05-22 08:55 AM CBI Interest Rate Decision 4% 4.5% 4.5%
2019-06-26 08:55 AM CBI Interest Rate Decision 3.75% 4% 4%
2019-08-28 08:55 AM CBI Interest Rate Decision 3.5% 3.75% 3.75%
2019-10-02 08:55 AM CBI Interest Rate Decision 3.5% 3.5%
2019-10-09 09:00 AM Financial Stability Report
2019-11-06 08:55 AM CBI Interest Rate Decision 3.5%

Iceland Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.75 18.00 3.50 percent [+]
Interbank Rate 3.95 3.95 18.47 3.88 percent [+]
Money Supply M0 121.35 111.42 173.88 11.05 ISK Billion [+]
Money Supply M1 532.69 533.18 533.18 8.88 ISK Billion [+]
Money Supply M2 1227.58 1224.26 1227.58 0.06 ISK Billion [+]
Money Supply M3 1945.37 1933.03 1945.37 0.03 ISK Billion [+]
Foreign Exchange Reserves 838422.56 806269.32 1110368.00 610.00 ISK Million [+]
Banks Balance Sheet 3904756.00 3934804.00 14896283.00 257400.00 ISK Million [+]
Private Debt to GDP 314.90 336.70 400.80 272.80 percent [+]
Central Bank Balance Sheet 855172.00 823172.00 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 September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
3.50 3.75 18.00 3.50 1998 - 2019 percent Daily

Country Last Previous
Argentina 83.46 Sep/19
Turkey 16.50 Sep/19
Mexico 8.00 Aug/19
Russia 7.00 Sep/19
South Africa 6.50 Aug/19
Brazil 5.50 Sep/19
India 5.40 Aug/19
Indonesia 5.25 Sep/19
China 4.25 Sep/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.74 Aug/19
South Korea 1.50 Aug/19
Australia 1.00 Sep/19
United Kingdom 0.75 Aug/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Sep/19
Switzerland -0.75 Sep/19