Policy Rate in Iceland to Remain at 18 Percent Skip to content

Policy Rate in Iceland to Remain at 18 Percent

The Central Bank of Iceland announced yesterday that the policy rate would remain at 18 percent. Central Bank governor and chairman Davíd Oddsson said they had been following the advice of the International Monetary Fund (IMF).

The Central Bank of Iceland. Copyright: Icelandic Photo Agency.

Oddsson told reporters that the Central Bank had considered it the appropriate time to start lowering the policy rate and that the bank had notified the IMF of their opinion, mbl.is reports.

The IMF, on the other hand, recommended that the policy rate remain unchanged considering the temporary period of uncertainty in Icelandic politics, Oddsson explained, and the Central Bank’s board of governors had decided to follow the IMF’s recommendation.

The Central Bank raised the policy rate from 12 percent to 18 percent at the end of October, 2008, also in compliance with IMF recommendations.

Click here to read more about that story.

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