The Central Bank of Iceland raised its key interest by 100bps to 4.75% on June 22, 2022, marking a sixth consecutive increase in borrowing costs, and signaled further rate hikes in the coming meetings. The Monetary Policy Committee based its decision on efforts to curb accelerating consumer prices, lifted by energy prices globally and housing prices domestically. The annual inflation rate in Iceland accelerated to 7.6% in April, the highest since 2010 and well above the central bank’s target of 2.5%. The MPC also noted that growth during Q1 was stronger than expected, while economic activity and the job market are forecasted to remain strong, justifying the rate hike. The Icelandic economy grew 1.1% quarter-on-quarter and 8.6% year-on-year in Q1. source: Central Bank of Iceland

Interest Rate in Iceland averaged 6.63 percent from 1998 until 2022, 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 July of 2022.

Interest Rate in Iceland is expected to be 4.75 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 5.00 percent in 2023 and 4.00 percent in 2024, according to our econometric models.

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Iceland Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-02-09 08:30 AM CBI Interest Rate Decision 2.75% 2% 2.75%
2022-05-04 08:30 AM CBI Interest Rate Decision 3.75% 2.75% 3%
2022-06-22 08:30 AM CBI Interest Rate Decision 4.75% 3.75% 4.5%
2022-08-24 08:30 AM CBI Interest Rate Decision 4.75% 5.75%
2022-08-24 09:00 AM Monetary Bulletin
2022-09-28 09:00 AM Financial Stability Report


Related Last Previous Unit Reference
Interest Rate 4.75 3.75 percent Jun 2022
Interbank Rate 5.24 5.24 percent Jul 2022
Money Supply M1 803.17 836.49 ISK Billion Jan 2022
Money Supply M0 127.71 160.71 ISK Billion Jan 2022
Money Supply M2 1565.13 1512.51 ISK Billion Jul 2021
Money Supply M3 2260.10 2222.00 ISK Billion Jul 2021
Foreign Exchange Reserves 859692.59 880289.00 ISK Million May 2022
Banks Balance Sheet 4747152.69 4702600.62 ISK Million Jan 2022
Central Bank Balance Sheet 936372.00 963736.00 ISK Million Jan 2022

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.
Actual Previous Highest Lowest Dates Unit Frequency
4.75 3.75 18.00 0.75 1998 - 2022 percent Daily

News Stream
Iceland Hikes Interest Rate by 100bps to 4.75%
The Central Bank of Iceland raised its key interest by 100bps to 4.75% on June 22, 2022, marking a sixth consecutive increase in borrowing costs, and signaled further rate hikes in the coming meetings. The Monetary Policy Committee based its decision on efforts to curb accelerating consumer prices, lifted by energy prices globally and housing prices domestically. The annual inflation rate in Iceland accelerated to 7.6% in April, the highest since 2010 and well above the central bank’s target of 2.5%. The MPC also noted that growth during Q1 was stronger than expected, while economic activity and the job market are forecasted to remain strong, justifying the rate hike. The Icelandic economy grew 1.1% quarter-on-quarter and 8.6% year-on-year in Q1.
2022-06-22
Iceland Hikes Interest Rate by 100bps to 3.75%
The Central Bank of Iceland raised its key interest rate by 100bps to 3.75% on May 4th, 2022, a fifth consecutive increase in borrowing costs, and signaled further rate hikes in the coming meetings. The Monetary Policy Committee based its decision on efforts to curb accelerating consumer prices, lifted by energy prices globally and housing prices domestically. The annual inflation rate in Iceland accelerated to 7.2% in April, the highest since 2010 and well above the central bank’s target of 2.5%. Due to the war in Ukraine, the MPC upwardly revised inflation forecasts to above 8% in the third quarter of 2022 and said it does not expect inflation to fall below 3% until 2024. The committee also downwardly revised GDP growth estimates to 4.6% for 2022 and 2.6% for 2023, compared to 4.8% and 2.1%, respectively.
2022-05-04
Iceland Hikes Interest Rate by 75bps to 2.75%
The Central Bank of Iceland raised its key interest rate by 75bps to 2.75% on February 9th 2022, hiking rates for a fourth meeting in a row to the highest in two years as inflation pressure fueled by rising house prices persists. The annual inflation rate in Iceland accelerated to 5.7% in January, well above the central bank's target of 2.5%. The Monetary Policy Committee noted that it is assumed that headline inflation will ease when house price inflation slows down and global price hikes taper off; however, it is not expected to align with the target until the end of the forecast horizon. The central bank expects the economy to grow around 4.8% this year compared to the 5.1% it projected in November.
2022-02-09