Central Bank of Iceland Cuts Key Interest Rates Skip to content

Central Bank of Iceland Cuts Key Interest Rates

The Monetary Policy Committee (MPC) of the Central Bank of Iceland decided today to lower the bank’s key interest rates by one percentage point, from 5.5 to 4.5 percent.

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The Central Bank of Iceland. Copyright: Icelandic Photo Agency.

According to visir.is, this is a more significant drop than specialists had assumed; research departments had predicted a cut of 0.5 to 0.75 percent.

On the Central Bank’s website it says that the deposit rate (current account rate) was lowered by 0.5 percentage points, to 3.5 percent.

The maximum bid rate for 28-day certificates of deposit (CDs) and the seven-day collateralized rate were lowered by one percentage point each, to 4.25 percent and 4.5 percent, respectively.

Finally, the overnight lending rate was lowered by 1.5 percentage points, to 5.5 percent.

Click here to read about the bank’s last key interest rate decision.

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