Key Interest Rate in Iceland Cut to 5.5 Percent Skip to content

Key Interest Rate in Iceland Cut to 5.5 Percent

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the bank’s key interest rate by 0.75 percentage points, from 6.25 to 5.5 percent.

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The Central Bank of Iceland. Photo by Páll Stefánsson.

The deposit rate (current account rate) will be 4.0 percent, and the maximum bid rate for 28-day certificates of deposit (CDs) will be 5.25 percent. The seven-day collateralized lending rate will be 5.5 percent and the overnight lending rate 7.0 percent, as stated on the bank’s website.

According to mbl.is, financial research departments had predicted a lowering of the key interest rate by 0.5-0.75 percent.

In late September the key interest rate was also cut by the same percentage point, from 7.0 to 6.25 percent. The next interest rate decision will be announced on December 8.

Click here to read about the Central Bank’s last interest rate decision.

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