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 June 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.