The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the key interest rate for Iceland by one percent, from eight to seven percent, as announced by the bank today.
The Central Bank of Iceland. Copyright: Icelandic Photo Agency.
A press release published on the bank’s website states that the deposit rate (current account rate) will now be 5.5 percent, and the maximum bid rate for 28-day certificates of deposit (CDs) will be 6.75 percent.
Furthermore, the seven-day collateralized lending rate will be seven percent and the overnight lending rate 8.5 percent.
According to visir.is, the departments of research and analysis at the commercial banks in Iceland had predicted a key interest rate drop by 0.5 to one percent.