Kaupthing says inflation "can't be stopped" Skip to content

Kaupthing says inflation “can’t be stopped”

In a recent report in its daily “4:30 bulletin” Kaupthing (KB-bank) says that “it is impossible to stop the inflation now in the pipeline”. Kaupthing quotes the latest inflation report of the Central Bank saying that even if the Central Bank’s base rate is raised to 18.5% at the end of the year inflation will still reach 11%.

“Higher interest rates will accelerate the adjustment towards the inflation targets and reduce inflation expectations. But the risk of a hard economic landing will increase instead,” said Kaupthing.

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