Policy Rate Remains at 13.3 Percent Skip to content

Policy Rate Remains at 13.3 Percent

By Iceland Review

Davíd Oddsson, director of Iceland’s Central Bank, announced yesterday that the policy rate would remain at 13.3 percent despite a worsening inflation outlook. Oddsson criticized ideas of adopting the euro without joining the EU.

“There has been some currency disturbance lately and the short-term inflation outlook is worse now than the last time the policy rate was set,” Oddsson said.

Oddsson said he had not sensed any pressure from the economy to change Iceland’s currency from króna to euros like Minister of Trade Björgvin G. Sigurdsson has claimed, Fréttabladid reports.

Oddsson said he found the idea of adopting the euro without joining the EU “ridiculous” like some foreign financial experts have suggested, referring to the experience of poor countries who have adopted the dollar.

“But I think it is natural that we discuss these issues,” Oddsson added.

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