Iceland Maintains Western Europe’s Highest Rate Skip to content

Iceland Maintains Western Europe’s Highest Rate

Iceland’s Central Bank left its interest rate unchanged at 6 percent for a sixth consecutive meeting when its Monetary Policy Committee (MPC) met last week. The seven-day collateral lending rate is the highest in western Europe, bloomberg.com reports.

centralbank_ipaIceland’s Central Bank. Photo copyright Icelandic Photo Agency.

The Central Bank credits, in part, its foreign exchange market strategy for reduced exchange rate fluctuations. The ISK has remained relatively stable, increasing 8.7 percent since January, but it has taken longer than expected for inflation, currently 3.8 percent, to decrease, according to a statement from the bank.

ZR

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article

Facebook
Twitter