The Central Bank of Iceland raised its key interest rate by 100bps to 3.75% on May 4th, 2022, a fifth consecutive increase in borrowing costs, and signaled further rate hikes in the coming meetings. The Monetary Policy Committee based its decision on efforts to curb accelerating consumer prices, lifted by energy prices globally and housing prices domestically. The annual inflation rate in Iceland accelerated to 7.2% in April, the highest since 2010 and well above the central bank’s target of 2.5%. Due to the war in Ukraine, the MPC upwardly revised inflation forecasts to above 8% in the third quarter of 2022 and said it does not expect inflation to fall below 3% until 2024. The committee also downwardly revised GDP growth estimates to 4.6% for 2022 and 2.6% for 2023, compared to 4.8% and 2.1%, respectively. source: Central Bank of Iceland
Interest Rate in Iceland averaged 6.64 percent from 1998 until 2022, 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 May of 2022.
Interest Rate in Iceland is expected to be 4.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Interest Rate is projected to trend around 5.00 percent in 2023 and 4.00 percent in 2024, according to our econometric models.