Central Bank raises interest rates to 14 percent

The Central Bank of Iceland announced this morning that it will raise its policy interest rates by 0.5 percent, to 14 percent. This is in line with forecasts by the commercial banks in Iceland and experts that the Bloomberg news agency commissioned to evaluate the situation in Iceland. Interest rates have gone up by 4.5 percent since September last year, and this is the Central Bank’s 17th interest rate hike since May 2004. The market has responded favorably to the increase and the rate of the Icelandic krona has gone up by half a percent this morning. This is reported by Morgunbladid and RÚV online.