Iceland Central Bank Keeps Rate On Hold

dpa-AFX International Compact |

JAKARTA (dpa-AFX) - Iceland's central bank maintained its key interest rates, as widely expected, on Wednesday.

The Monetary Policy Committee of the Central Bank of Iceland decided to hold the seven-day term deposits rate at 4.25 percent. The bank had lowered the rate by a quarter point in .

Since the last meeting, the króna has appreciated and the foreign exchange market has remained well balanced.

Although inflation expectations appear to have risen marginally, inflation outlook remained broadly unchanged since the last meeting.

However, it is too soon to determine whether inflation expectations have become less firmly anchored to the inflation target, the bank said.

The high real exchange rate has slowed export growth, and the outlook is for the positive output gap to narrow. Nevertheless, the bank observed that a tight monetary stance is needed in order to contain rapid domestic demand growth.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


What Is Petrolithium?

MGX Minerals explains the advantages of petrolithium and how they are helping to solve future problems today.

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.