Interest rates increase 0.25%

The Icelandic Central Bank has increased the base interest rate by 0.25% to 10.75% starting January 31 reports Morgunbladid. The bank’s other interest rates will also increase by 0.25% from February 1. Since the end of last September, the Central Bank’s base rate has increased 1.25%. The increase was widely predicted by the research departments of the Icelandic banks.