The Central Bank of Iceland raised its key interest rate by 25bps to 1 percent during its May meeting, amid high and persistent inflationary pressures. Latest economic data suggests a stronger than expected recovery, driven by a more robust domestic demand, with updated GDP growth forecasts standing at over 3% for 2021 and 5% for 2022. Signs of warning came specially from the widespread inflationary pressures, as prices are rising at a faster and more persistent way than previously expected, currently at an 8-year high of 4.6% YoY. Global factors such as supply-side disruptions and steep rises in the prices of oil and commodities, and country-specific ones like the increasing wages and house prices, and the depreciation of the króna, are the main causes for the upward trend in prices. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.88 percent from 1998 until 2021, reaching an all time high of 18 percent in October of 2008 and a record low of 0.75 percent in November of 2020. This page provides - Iceland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2021.
Interest Rate in Iceland is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Iceland to stand at 1.25 in 12 months time. In the long-term, the Iceland Interest Rate is projected to trend around 1.75 percent in 2022 and 2.50 percent in 2023, according to our econometric models.